29 July 2015. Today, HeidelbergCement AG, Germany, has entered into a purchase agreement with Italmobiliare S.p.A. for its approx. 45% shareholding in Italcementi S.p.A., Italy (the “Stock Purchase Agreement”) listed on the Milan (Italy) stock exchange. The purchase price (subject to contractual purchase price reductions) amounts to € 10.60 per Italcementi share and therefore a total of around € 1.67 billion. The purchase price will be partially paid by way of issuing to Italmobiliare S.p.A. at least 7.75 million and at most 10.5 million new no-par value shares in HeidelbergCement AG (this corresponds to at least 3.96% and at most 5.29% of the new share capital) resulting from a yet to be carried out capital increase against contribution in kind.
The closing of the Stock Purchase Agreement is subject to, inter alia, approval by the competition authorities, particularly in Europe and in the USA, and is expected to take place during 2016. In the event that the Stock Purchase Agreement is consummated, HeidelbergCement AG or one of its subsidiaries will make a mandatory public cash offer under Italian law to all remaining Italcementi shareholders to acquire their shares at the price provided for by applicable law (the “Mandatory Offer”) that as of today is expected to be equal to € 10.60. In case certain adjustment mechanisms under the Stock Purchase Agreement reduce the price per share paid at the closing of the Stock Purchase Agreement, the same per share reduction will be expected to be applied to the price under the Mandatory Offer.
The acquisition will be financed through a bridge financing of € 4.4 billion provided by a bank consortium. The bridge financing is to be repaid by issuing bonds, as well as by operational cashflow and proceeds from streamlining the portfolio.