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AEV CRH buys P6.12B Lafarge shares via tender offer.

AEV CRH Holdings, Inc., a partnership between Aboitiz Equity Ventures and CRH Plc, has bought P6.12 billion worth of the shares of Lafarge Republic Inc. through a tender offer and is set to delist the shares of the cement firm.

In a disclosure to the Philippine Stock Exchange, AEV said they accepted from the public a total of 596.49 million shares representing 10.24 percent of the outstanding shares of LRI following the conclusion of the mandatory tender offer period last September 9.

The tendered shares brought up AEV CRH's total shares in LRI to 99.09 percent. The firm had offered to buy all the 649.08 million LRI shares in the hands of the public at P10.26 per share.

AEV CRH offered to acquire 11.15 percent of the issued and outstanding shares of LRI representing shares held by the public.

Under the Mandatory Tender Offer (MTO) rules, AEV CRH is required to conduct an MTO subsequent to its acquisition of approximately 88.85 percent of the issued and outstanding shares of LRI in a private sale from the major shareholders of LRI.

After it acquires control of LRI, AEV CRH intends to cause LRI's newly-elected Board of Directors to approve the filing of an application for voluntarily delisting of the LRI shares with the PSE.

AEV borrowed US$400 million to partially fund its P24 billion acquisition of various Philippine assets and businesses of Lafarge S.A., including the cement production and other cement related businesses and services.

The firm said it has signed a Facility Agreement with The Bank of Tokyo-Mitsubishi UFJ, Ltd. to obtain a US$400 million bridge loan.

AEV and CRH earlier announced plans to acquire the majority of the shares of LRI and the shares in Luzon Continental Land Corporation and Lafarge Cement Services Philippines, Inc., which together constitute the majority of Lafarge's Philippine cement operations.

The firms that will be acquired own four Luzon-based cement manufacturing plants located in Bulacan, Norzagaray, Teresa, and Batangas; a plant in Danao City, Cebu, and associated limestone quarries.

AEV president Erramon I. Aboitiz said "we are very pleased with the prospect of entering this new business, which is a solid opportunity that will support our thrust to develop infrastructure as one of our core businesses and create a more diversified income source for AEV."

"Together with CRH, we aim to take an already successful Philippine cement operations and management team to greater heights, as the country's need for quality cement will continue to grow in line with its resurgent economy and infrastructure sector," said Aboitiz.



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Title Annotation:Latest News
Publication:Manila Bulletin
Date:Sep 14, 2015
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