The Board of Directors approved the plan at a meeting on 6 March. The plan encompasses: a share capital increase of Italcementi for a maximum amount of €450 million; the launch of a voluntary public tender offer on all the minority shares not already owned in Ciments Français; the conversion of Italcementi savings shares into ordinary shares. The capital increase will be used for the acquisition of Ciments Français minorities. The rights issue is expected to be launched in June 2014 in parallel with the Ciments Français tender offer after all necessary authorisations from the Italian Supervisory Authorities and subsequent to the effectiveness of the savings shares conversion.
Carlo Pesenti, Italcementi’s CEO, said: “The plan we have identified represents an answer to the market’s longstanding focus on a more streamlined governance of the Group, in order to highlight more effectively the value of our activities. The plan also represents the necessary final step in the restructuring and efficiency actions that the Group has implemented over the last years, with a particular focus on the Italian market, with results that [are] already visible in our 2013 accounts.”
He added, “The transaction, approved by the Boards of Italcementi and Italmobiliare, will increase operating and financial efficiency, as well as promoting a unified management to support the development of future industrial plans of Italcementi Group, while preserving the Group’s financial flexibility and capital strength. Furthermore, a streamlined governance and control chain, coupled with the conversion into ordinary shares reserved to the savings shareholders at a clear premium on the implied market conversion ratios, is expected to have positive effects on Italcementi’s market capitalization and free float, hence improving the company’s visibility and recognition by the stock markets”.
Ciments Français is holding a board meeting on 10 March to discuss the terms of the proposal.
To view the full press release, click here.
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/europe-cis/07032014/italcement_plans_to_streamline_group_866/