North / South America
Cimpor terms Camargo takeover bid as ‘low’ and lacking in information
Apr, 16 2012
(Brazil) -- Cimpor has said that the takeover offer from Brazil’s Camargo Correa, Brazil's second-largest construction group, is too low and does not contain definite plans on Cimpor’s future.
Cimpor's said the offer does not include a premium for taking control of the company and lacks detail on what would happen to Cimpor's asset portfolio, debt profile and dividend policy.
"For the above reasons, the board is not in a position to recommend to shareholders to tender their shares, as the price is low and significantly undervalues Cimpor, and, in the absence of adequate information on the future of Cimpor post-offer, neither may the board recommend to shareholders to maintain their investment," it said.
However, the company would not recommend to shareholders whether they should sell or keep their stakes.
Last month, Camargo launched a 5.5 euros ($7.20) a share takeover bid for the 67.1 percent of Cimpor that it does not own. Two other shareholders had said that they were prepared to sell.
However, Cimpor’s opinion, given in a statement issued late on Friday, could complicate the process or require sweetening of the bid.
Camargo is the largest single Cimpor shareholder and the shares it does not own in Cimpor are valued at around 2.4 billion euros.
Earlier this week, Portuguese conglomerate Semapa proposed some Cimpor shareholders should form a joint holding company to try to keep the company in Portuguese hands. It offered a per share price of 5.75 euros.
Camargo has said the price it offered is fair, expecting most Cimpor shareholders to use this "good opportunity", but would not say if it would consider sweetening the offer.
However, it did say that Semapa's complex proposal could not be compared to Camargo's direct bid. Semapa's arrangement would have to trigger a compulsory competing bid by those who join the Semapa-proposed holding company.
By: Rashmi Kalia (ARI-C NEWS)
Improved construction conditions and product strengths boost sale of limestone says Indiana Limestone Co. More
Online auction company IronPlanet will conduct its first West African online auction for surface and mining equipment, and construction machinery on 3 September 2014. More