Australia's Wattyl Ltd. said on Monday that it will endorse a A$142 million takeover tender from Valspar Corp. after the U. S. paintmaker raised its initial cash proposal by almost 30%.

In a statement, Wattyl said that Valspar, which is an international leader in the paint and coatings industry with wide-ranging manufacturing and distribution operations in Asia, has been able to raise its initial May 25 offer of A$1.30 per share, to A$1.67 a share cash, and subject to a self-governing expert's assessment, recommends shareholders to recognize the contract.

The proposed acquirement helps shareholders to realize cash for their Wattyl shares at a noteworthy premium to recent trading levels, Wattyl Chairman, John Ingram said.

With global expertise and scale, Valspar will offer Wattyl's clientele and staff with momentous benefits. Valspar is in a very strong position to offer support to Wattyl for the next stage of its growth.

Wattyl's biggest shareholder, Hunter Hall Investment Management Ltd., which holds almost a 19% stake, has come out in support of the new contract, a person familiar with the issue said on Monday.

The shares, which have been trading at a minor discount to the original offer price, increased stridently on Monday and were last up 28% at A$1.615.