Cemex higher offer for Readymix likely to pass
SHAREHOLDERS in troubled cement maker Readymix are almost certain to approve an expected takeover of the group after majority owner Cemex agreed to raise its potential offer for the Irish company.
Mexico's Cemex, which already owns 60pc of Readymix, has increased its proposed offer for the firm by nearly 14pc to 25c per share. That values the Irish business at just over €27m.
Last month Cemex indicated that it might be prepared to pay 22c per Readymix share. However, Readymix said yesterday that following discussions with the independent committee established to assess the possible offer, Cemex had agreed to raise its potential bid.
"In consultation with its advisers, the independent committee has considered the merits of this increased offer and has determined that the terms are fair and reasonable," said Readymix.
"The independent committee has accordingly informed Cemex that, if announced, it would recommend Readymix shareholders to accept the offer."
The company's independent committee said that having regard to the current economic circumstances, the uncertain outlook as well as the probability of continuing operating losses, there would be a "progressive erosion" of the value of Readymix's assets.
The committee also said a €35m debt facility provided to Readymix falls due in September 2014.
It said it has concluded that the increased possible offer, were it to be firmly committed, "would be in the best interests of Readymix and its minority shareholders".