HeidelbergCement in agreed UK£8bn offer for Hanson, UK

HeidelbergCement in agreed UK£8bn offer for Hanson, UK
15 May 2007

HeidelbergCement confirmed it is bidding 1,100 pence per share to buy UK building materials company Hanson PLC, valuing the company at about UK$8bn.  
The board of Hanson will ’unanimously recommend that Hanson shareholders vote in favour’ of the offer as a merger of the two companies is ’strategically compelling, creating a strong, market leading, global building materials group,’ Hanson said in a statement.  
The 1,100 pence offer price represents a 50 pct premium to the average closing mid-market price of 734 pence per Hanson share for the 12 months to May 2.  
The acquisition will be made by HeidelbergCement’s Lehigh unit.  
In a separate statement, HeidelbergCement said it plans to issue up to EUR2bn hybrid bonds and sell certain non-core activities to fund the purchase.  
The German cement maker said it is also planning a EUR500m cash capital increase to help maintain its investment-grade credit rating.  

Published under Cement News