Novar board accepts Honeywell’s £1.2bn acquisition offer

Honeywell has agreed to pay £798m for Novar, £1.2bn on aggregate, to improve its European security, fire and ventilation business.

The offer will be made on the basis of 185 pence per Novar share and holders of Novar ordinary shares will be entitled to retain a final 2004 dividend of 6.6 pence per share. Preference-share holders will receive £131m and Honeywell will assume £300m in debt.

The Honeywell bid added a 28% premium to Melrose’s hostile bid, made last month. Novar rejected Melrose’s offer and said it undervalued the group.