National Titanium Dioxide Co. (Cristal), the world's second-biggest producer of titanium dioxide, made a cash bid for Australia's Bemax Resources Ltd., valuing it at A$301.5 million ($290 million). Bemax said on Tuesday it had recommended a A$301 million takeover offer from Cristal. In a statement on Monday, Cristal said it intended to use Bemax to supply feedstock to its Millenium plant in Western Australia. Titanium dioxide is used as a pigment to provide whiteness in the production of a wide variety of items from paints to toothpaste. Cristal, a unit of Saudi Arabian conglomerate Saudi National Industrialization Co (Tasnee), bought the Millenium titanium dioxide pigment business from its US owner in 2007 for about $1.3 billion. Bemax said it had appointed Lonergan Edwards to provide a report on the fairness of the offer and has appointed Morgan Stanley and Hopgood Ganim lawyers to advise it on the deal. Cristal offered 32 cents a share, a 45 percent premium to Bemax's last closing price, it said today in a statement to the Australian stock exchange. Jeddah-based Cristal owns a 34.5 percent stake in Bemax and is its largest shareholder. Cristal wants to gain control of Bemax to get supplies of mineral sands to compliment its existing business in Western Australia. Titanium dioxide is used to whiten paints, plastics and paper. “Cristal intends to use Bemax increasingly to supply feedstock to its existing Millennium operations in Western Australia,'' the company said in the statement. “This will enable value adding of minerals in Australia before export to overseas customers.'' Bemax was unchanged at 22 Australian cents on May 23, its last trading day. The stock has dropped 14 percent this year. – Agencies __
