Ignite Luxembourg Holdings Sarl on Tuesday said its offer to acquire 29.9% of RHI Magnesita NV shares has received valid acceptances for around 19.5% of the latter’s issued share capital.

As a result, Ignite Luxembourg opted to waive the offer acceptance condition of at least a 20% stake, in order to progress the offer closer to completion, subject to remaining conditions.

In mid-June, Ignite Luxembourg, a company indirectly managed by Rhone Holdings VI LLC, made a partial cash offer for 14.1 million shares in Vienna-based refractory products supplier RHI Magnesita at a price of £28.50 for a total £401.9 million.

Shares in RHI Magnesita were up 6.3% to 2,850.00 pence each in London on Tuesday morning.

As of 1300 BST on Monday, Ignite Luxembourg said valid acceptances were received for 9.2 million shares, a 19.50% stake.

As a result, Ignite Luxembourg opted to waive the offer acceptance condition of at least 20%, meaning the offer remains conditional on satisfaction or waiver of its remaining conditions.

On Monday, both parties had agreed to extend the acceptance period to buy a stake in RHI Magnesita to July 21.

In late June, RHI Magnesita said it had been advised by Barclays Bank PLC and Peel Hunt LLC that the offer from Ignite Luxembourg to buy a non-controlling minority stake undervalues the company, noting that the offer price made by Ignite Luxembourg was lower than the average target price of equity research analysts of £30.73 per share.

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