Reliance Worldwide (RWC AU) Backs Brookfield's A$4.75/Share Indicative Terms

• Reliance Worldwide Corp (RWC AU), a manufacturer of plumbing components, has entered into a process deed with Brookfield, potentially leading to a A$4.75/share Offer by way of a Scheme.

• Brookfield has been granted four weeks of additional due diligence to “progress the proposal”. Brookfield had previously fielded bids of A$4.15, A$4.25, and A$4.50/share.

• Reliance’s board is unanimously supportive of terms, if firmed, which represent a 31.6% premium to undisturbed.

The Trade:

• Terms remain indicative; although I’d be upbeat on terms being firmed.

• Trading at a 6.5%/15% gross/annualised spread, assuming late January 2027 completion.

• Not bad.

• Look to get exposure here and on weakness.