Brief: Sabaf To Buy 68.5% Stake In C.M.I.

Sabaf SpA

01/07/2019 07:06

July 1 (Reuters) - Sabaf SpA  SABF.MI :
    * SIGNS AGREEMENTS FOR ACQUISITION OF A 68.5% STAKE IN 
C.M.I.
Cerniere Meccaniche Industriali s.r.l. (C.M.I.)
    * AGREEMENTS VALUE CMI AT EUR 19.55 MILLION EQUITY VALUE
    * AGREEMENTS INCLUDE ACQUISITION OF 60% BY MAJORITY
SHAREHOLDER
FOR EUR 11.73 MILLION PAID BY COMPANY VIA BANK LOAN
    * AGREEMENTS ALSO INCLUDE ACQUISITION OF 8.5% OF CAPITAL
OWNED BY
MINORITY SHAREHOLDERS FOR EUR 1.7 MILLION
    * ACQUISITION WILL BE PAID BY TRANSFERRING COMPANY'S SHARES,
INCLUDING LOCK-UP OF 50% FOR 12 MONTHS AND 24 MONTHS FOR
REMAINING 50%
    * SAYS AGREEMENT WITH MAJORITY SHAREHOLDER ALSO INCLUDES
ACQUISITION IN FAVOUR OF SABAF FOR THE REMAINING 31.5% OF
CAPITAL OF CMI  AND PUT OPTIONS
    * OPTIONS WILL BE EXERCISED IN TWO TRANCHES OF EQUAL VALUE
    * SAYS CLOSING OF ACQUISITION IS EXPECTED FOR JULY
    * C.M.I. IS CURRENTLY CONTROLLED BY THE CHINESE GROUP
GUANDONG
XINGYE INVESTMENT, WHICH HOLDS 91.5% OF SHARE CAPITAL;
THE REMAINING 8.5% IS HELD BY EROS GHERARDI - C.M.I.'S FOUNDER -
AND BY OTHER SHAREHOLDERS

Source text for Eikon:  urn:newsml:reuters.com:*:nBIA56tsyd
Further company coverage:  SABF.MI 

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