The offer of Portuguese cement group Cimpor for Ecuadorian sector firm Cemento Chimborazo has been rejected, Cimpor informed Portugal’s national bourse regulator CMVM on Sunday.
The rejection came from Ecuadorian bank Banco Nacional de Fomento – the majority shareholder in Cemento Chimborazo.
The price of the offer was probably the reason for the rejection. Cimpor reportedly offered US$20.7m (EUR 30.9m) for Cemento Chimborazo, while it was estimated to cost between US$70m and US$80m.
Cimpor launched the offer through its local subsidiary Cimpor del Equador SA.
As the bid was rejected, now the possible acquisition will not take place and consequently all the associated conditional investment commitments will be given up, Cimpor added in the filing to CMVM.