Brief: Saint-Gobain To Acquire CSR Ltd For $9.00 Per Share

CSR

26/02/2024 06:37

Feb 26 (Reuters) - Compagnie de Saint Gobain SA
 SGOB.PA :
    * SAINT-GOBAIN SIGNS A DEFINITIVE AGREEMENT TO ACQUIRE CSR
LIMITED, ESTABLISHING A LEADING POSITION IN LIGHT AND
SUSTAINABLE CONSTRUCTION IN AUSTRALIA
    * CLOSING EXPECTED IN THE SECOND HALF OF 2024
    * BUSINESS COMBINATION HAS BEEN UNANIMOUSLY APPROVED BY THE
BOARD
OF DIRECTORS OF SAINT-GOBAIN
    * A $9.00 PER SHARE, IN CASH, CORRESPONDING TO AN ENTERPRISE
VALUE
OF A $4.5 BLN (C. €2.7 BLN) AND A NET ENTERPRISE VALUE OF A $3.2
BLN(C. €1.9 BLN) POST SHORT TO MID-TERM MONETIZABLE  PROPERTY
VALUE OF AT LEAST A $1.3 BLN
    * AGREED UPON PRICE REPRESENTS A PREMIUM OF 33% ABOVE THE
VOLUME-WEIGHTED AVERAGE PRICE  PER SHARE FOR THE 1-MONTH TRADING
ENDED ON THE UNDISTURBED DATE OF FEBRUARY 20, 2024
    * BUSINESS COMBINATION HAS BEEN UNANIMOUSLY APPROVED BY THE
BOARD
OF DIRECTORS OF SAINTGOBAIN. THE BOARD OF DIRECTORS OF CSR HAS
UNANIMOUSLY RECOMMENDED THAT ITS SHAREHOLDERS  VOTE IN FAVOR OF
THE TRANSACTION.
    * VALUE CREATION BY YEAR 3 FOLLOWING THE CLOSING OF THE
TRANSACTION AND EPS (EARNINGS PER  SHARE) ACCRETIVE FROM YEAR 1.
    * MAINTAINING A STRONG BALANCE SHEET AND SOLID CREDIT RATING
WITH
A LIMITED IMPACT OF ABOUT 0.3X NET DEBT / EBITDA
    * A $60 MLN EXPECTED SYNERGIES IN YEAR 3 FOLLOWING
TRANSACTION
CLOSE, OF WHICH  A $50 MLN ARE COST SYNERGIES, DELISTING COSTS
AND PURCHASING, AND AT LEAST A $10 MLN OF GROWTH SYNERGIES

Source text for Eikon:  ID:nNDL73Mt3D 
Further company coverage:  SGOB.PA 

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