Readymix shares surge on back of buyout offer from Cemex
Published 20/01/2012 | 05:00
Troubled Irish cement maker Readymix has received an approach from majority shareholder Cemex to buy the remainder of the company.
Mexico-based Cemex already owns 60pc of Readymix, which has been struggling since the downturn. It has seen its revenues collapse and posted heavy losses in recent years.
Last year the company received two approaches for the business and some of its "material assets". Neither approach crystallised into an offer, however.
Yesterday Readymix said that it had received an approach from Readymix Investments, a wholly owned indirect subsidiary of Cemex Espana.
It outlined terms of a possible offer which it may be prepared to make. It has indicated that it might pay 22 cent per Readymix share to acquire the remainder of the business.
Shares in Readymix soared more than fivefold on the back of the announcement to 19 cent.
They had been trading at just 3 cent prior to yesterday's announcement.
At 22 cent per share, Readymix would be valued as a whole at €24m.
Goodbody analyst David O'Brien said that Readymix has a reserve value alone of 35 cent per share on its balance sheet and that the deal "makes sense" for Cemex.