Cemex control in Rinker reaches 30%

Cemex control in Rinker reaches 30%
24 May 2007

Cemex has obtained a 30.21% total share in Australian cement company Rinker, representing 270.4mn shares, the company announced in a statement to the Mexican stock exchange BMV.  
This represents a 10% increase on the company’s previous 27.47% holding in Rinker of 245.8mn shares, according to the statement.  
Shares held under the instruction of institutional investors rose 18.2% to 84.6mn shares, or 9.45% of the company, while shares held through "relevant interests" rose 6.7% to 185.8mn shares, or 20.76% of the company, the statement read.  
Cemex has decided to waive its condition to purchase at least 90% of Rinker’s shares, if its aggregate interest in the company’s shares exceeds 50% on or before the June 8 acquisition deadline, BNamericas reported previously.  
Cemex agreed to raise its takeover offer for Rinker to US$15.85 per share, up 21.9% from its original offer of US$13.00, previous reports indicated.  
As a 50% share of the company would represent 447.5mn shares, at this new offer price the total value of such a holding in the Australian company would be some US$7.1bn.  
Cemex’s plan to purchase 90% of Rinker’s shares, when also accounting for company debt, reached US$15.3bn, according to previous reports.  
Cemex plans to issue up to EUR750m (US$1.02bn) in fixed-to-floating rate perpetual debentures in order to obtain credit for the purchase of Rinker, as well as to improve its long-term debt maturity profile.  
Published under Cement News