Companhia Siderurgica Nacional (SID) through its indirect subsidiary CSN Cement S.a.r.l. has announced the final results of the tender offer to acquire up to all of the shares issued by Cimpor – Cimentos de Portugal, SGPS, S.A. (Cimpor) pursuant to the terms and conditions set forth in the prospectus, dated Dec 18, 2009.
On Dec 18, SID announced the launch of a public offer for the acquisition of 100% of the 672 million shares representing the capital stock of Cimpor, whose shares are traded on the Euronext Lisboa, for €5.75 per common share.
The acquisition of Cimpor will contribute to the formation of one the world’s largest cement producers, with an annual production capacity of 36 million tons of cement. Cimpor is among the top 10 world largest cement manufacturers in terms of market cap. In Brazil, it is ranked 3rd in terms of sales and 4th in terms of production capacity, and it has consistently recorded one of the highest EBITDA margins in the sector.
Cimpor is a Portuguese company with a presence among 13 countries in 4 continents (Europe, Asia, South America and Africa). It is the national leader for cement in Portugal, Cabo Verde and Mozambique and occupies important positions in Brazil, Egypt, China, Spain, Turkey, South Africa, Tunisia, Morocco, India and Peru. Its operations in emerging markets, with substantial growth potential, currently account for around 60% of its revenues.
CSN may use part of its available cash and/or finance part or all of the acquisition with financing lines from first-tier banks. The transaction will substantially expand and consolidate SID’s presence in the cement segment, besides its leading position in the steel, mining and logistics segments.
The transaction will also increase SID’s diversification in terms of products, new markets and geographical asset location, as well as reduce risks and add value to its shareholders.
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