Paint manufacturer Wattyl Ltd announced today that it has received an indicative, nonbinding and confidential takeover proposal of $1.30 per share from an overseas company.

The proposal puts the value of Wattyl at about $110 million.

In a statement, Wattyl said the proposal offers to acquire all of its issued capital by scheme of arrangement. The company said the proposal requires a unanimous board recommendation, in the absence of a superior proposal, and is conditional on Foreign Investment Review Board and NZ Overseas Investment Office approvals.

Wattyl said the takeover bid is not conditional on due diligence.

The company said the Board has not formed a view with respect to the proposal and recommended that shareholders take no action at this time.

Wattyl has engaged Gresham Advisory Partners and Clayton Utz as advisors for the takeover bid.

Newspaper reports identified US-based paint manufacturer Valspar as the takeover bidder for Wattyl. Valspar is a company has annual sales of $3.39 billion and is a major supplier to US hardware group Lowes.

Wattyl filed for trading halt yesterday as its Board considers the proposal.

Shares in Wattyl last traded at $0.83 a share.