Switzerland’s Holcim cement group has reported it will issue new shares to help finance its $750 million (SFr922 million) bid to become the sole owner of its Apasco unit in Mexico.This content was published on January 23, 2004 - 12:09
Holcim said on Friday that it wanted to “tie” the Mexican company more tightly into the group.
No details have been given on how much Holcim would raise or when the capital increase would take place, but the company said that the extra cash would provide enough equity to “maintain its financial profile”.
Holcim is offering to buy up to 73.44 million, or 31.1 per cent, of the outstanding common shares in Apasco for $10.20 per share.
Subject to approval
The group said the offer was subject to approval by the supervisory body of the Mexican Stock Exchange and, if approved, would begin in February.
“We are confident that the offer will be approved,” commented a Holcim spokesman, adding that a detailed prospectus would then be prepared for investors.
Holcim, which has its group headquarters in Zurich, announced last week that it had increased its stake in Russia’s Alpha cement company to 68.8 per cent by buying share packages in deals that had won regulatory approval.
swissinfo with agencies
Apasco is Mexico’s second-largest cement maker.
Holcim is the world number two behind Lafarge of France.
Holcim has majority and minority interests in more than 70 countries on all continents.
Net income at Holcim, formerly Holderbank, was SFr506 million in 2002. It employed 51,115 people at the end of that year.
Holcim is making a $750 million bid for the shares it does not own in Mexico’s Apasco cement company.
It plans to issue shares to help finance the deal.
Holcim currently has a 68.9 stake in Apasco.
In compliance with the JTI standards