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Camargo takeover of Cimpor to involve asset swap

May, 31 2012

(Portugal)  --  Portugal's securities regulator CMVM has announced that an asset swap will be a part of the takeover bid by Brazil's construction group Camargo Corrêa for Portuguese cement maker Cimpor.

The asset swap will involve a buy out of another Brazilian shareholder that will get part of Cimpor's overseas business.

CMVM said that Camargo and the other Brazilian shareholder Votorantim had agreed that the deal would involve an asset swap.

Under the agreement of asset swap, Camargo will exchange its cement and concrete business in South America and Angola for Cimpor's overseas assets, including in China and India but excluding Brazil, also taking hold of 21% of Cimpor's net consolidated debt. Camargo will then swap the assets it received for Votorantim's stake in Cimpor.

CMVM has already approved the previously announced Euro5.50/share bid under these terms and said that the remaining shareholders in Cimpor would have until 19 June 2012 to decide whether to sell their stakes.

Camargo Corrêa, which is already the largest single shareholder in Cimpor with a 33% stake, launched a Euro2.5bn bid for the rest of Cimpor in March 2012.  


By: Rashmi Kalia (ARI-C NEWS)

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