(Reuters) -QXO on Tuesday once again extended the deadline for its $11 billion takeover offer for Beacon Roofing Supply by a week to March 10.
QXO, a new entrant in the building products distribution industry that counts U.S. President Donald Trump’s son-in-law Jared Kushner as a board member, made a bid in January to buy Beacon’s outstanding shares for $124.25 per share.
But Beacon rejected the offer saying it significantly undervalued the company. Following which, QXO CEO Brad Jacobs directly approached Beacon’s shareholders in a hostile takeover attempt.
QXO said on Tuesday about 19.18% of Beacon’s outstanding shares were tendered, compared with 17.3% as of February 24, which was the first deadline for the company’s shareholders to tender their shares.
Virginia-based Beacon has, however, adopted a poison pill defense to prevent a hostile takeover, and has been looking for alternative buyers and an improved offer.
Jacobs said Beacon’s chairman, Stuart Randle, and CEO Julian Francis last year sold about 21% and 10% of their shares, respectively, at lower values than QXO’s offer.
Last month, QXO proposed 10 independent director nominees to replace Beacon’s board of directors after it obtained antitrust clearance in the United States and Canada for acquiring the roofing material supplier.
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Shinjini Ganguli)
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