Saint-Gobain strikes formal deal to acquire CSR at $9 a share

Company News

by Glenn Dyer

CSR (ASX:CSR) is disappearing with its French suitor, Saint-Gobain, striking a formal deal to make a bid at $9 a share.

CSR had its shares suspended on Monday to allow for an important announcement which came at 5:49 pm with the news of the formal offer.

Saint-Gobain said on Monday it had agreed to buy CSR for $A4.30 billion in cash in a scheme of arrangement deal aimed at increasing its exposure to the Asia-Pacific. The French construction-materials company said it had entered into a definitive agreement to buy CSR with an offer of A$9.00 a share.

The bid represents an enterprise value of $4.5 billion, including debt and at least A$1.3 billion in property value that could be monetized, Saint-Gobain said.

The companies revealed last week that they were in talks.

Saint-Gobain's board unanimously approved the combination, while CSR's board recommended that its shareholders vote in favor of the deal, Saint-Gobain said.

The deal is expected to be closed in the second half of the year.

Saint-Gobain said it expects the deal to help its earnings per share from the first year and that the transaction will increase the company's exposure to Australia's high-growth construction market.

CSR said that it had also agreed with Saint-Gobain that a fully franked dividend may be paid to shareholders, with the amount of that dividend deducted from the cash offer price.

"Additionally, a 2 cents per month ticking fee, accruing on a daily basis, will be payable if the effective date of the Scheme is delayed beyond 26 June 2024, which would not be deductible from the cash offer price,” CSR revealed.

Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?