Portugal’s Cimpor cement group rejects takeover bid by Brazil’s CSN

8 January 2010

Lisbon, Portugal, 8 Jan – The directors of Portugal’s Cimpor cement group have unanimously rejected a takeover bid by Brazil’s Companhia Siderúrgica Nacional (CSN), considering it to be hostile.

“At today’s meeting the Cimpor board of directors unanimously decided to reject the bid and to recommend to its shareholders that they should not sell their shares,” reads the company report on opportunities and conditions of the CSN offer, released by Portugal’s CMVM market regulator on Thursday.

Top stakeholders in Cimpor include the Portuguese construction group Teixeira Duarte (22.9 percent), the French cement group Lafarge (17.3 percent), the businessman Manuel Fino (10.7 percent) and Portugal’s state-owned financial group Caixa Geral de Depositos (9.6 percent).

The document indicates that the Cimpor board of directors considers the bid announced last 18 December to be “hostile, because it is opportunistic, irrelevant and disrupts the activity” of the Portuguese company.

According to the report, the recommendation from the Cimpor board of directors is grounded on various reasons, specifically the 5.75 euros per share offered by CSN, an “offer which significantly undervalues” the cement company, besides the fact that the Brazilian company is offering no premium to shareholders.
The CMVM has asked CSN to provide more information about the takeover bid so that it can decide whether or not to authorise the operation, which involves an investment of 3.864 billion euros.

Cimpor operates in Portugal, Spain, Morocco, Tunisia, Egypt, Turkey, Brazil, Mozambique, South Africa, Cape Verde, Peru, India and China, where in 2008 it acquired the entire capital of the Liyang Dongfang Cement Co (Liyang). (macauhub)