This article is from the Australian Property Journal archive
BUILDING materials manufacturer CSR is all set for a $4.3 billion takeover by French conglomerate Saint-Gobain.
Saint-Gobain’s bid of $9.00 per share was unanimously recommended to shareholders by the board. It comes in as 33% higher to the closing share price on 20th February and at a 61% premium to the 12-month volume-weighted-average price.
CSR’s share price jumped in the brief window of news emerging of the acceptance and a trading halt on Monday, having already surged on a media leak about the deal last week. On Tuesday, its share price was sitting another 5% higher, at $8.80.
One of oldest companies on the ASX, CSR makes Gyprock plasterboard, PGH bricks, Monier roof tiles, building blocks and insulation. It also has a one-quarter share in the Tomago aluminium smelter in NSW.
Saint-Gobain itself is 359 years old.
“We believe Saint-Gobain has strong strategic and cultural alignment with CSR and will support innovation in the Australian and New Zealand building products industry,” said CSR managing director and CEO, Julie Coates.
“The transaction also offers opportunities for our other stakeholders, including the CSR team and customers.”
CSR chairman John Gilliam suggested there had been protracted talks between the companies.
“The final proposal follows an initial offer in early January this year and a period of negotiation,” he said.
The companies have had commercial arrangements for a number of years.
