Reuters: Regulatory News: Bid for Cimpor involves asset swap with Votorantim

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Bid for Cimpor involves asset swap with Votorantim May 29th 2012, 16:32 LISBON | Tue May 29, 2012 12:32pm EDT LISBON May 29 (Reuters) - A takeover bid by Brazil's construction group Camargo Correa for Portuguese cement maker Cimpor will involve an asset swap to buy out another Brazilian shareholder that will get part of Cimpor's overseas business, Portugal's securities regulator CMVM said on Tuesday. CMVM approved the previously-announced 5.5 euro a share bid under these terms and said the remaining shareholders in Cimpor would have between Wednesday and June 19 to decide whether to sell their stakes. Camargo Correa, which is already the largest single shareholder in Cimpor with a 33 percent stake, launched a 2.5 billion euro ($3.3 billion) bid for the rest of Cimpor in March, in a move defended by the Portuguese government. CMVM said that Camargo and the other Brazilian shareholder Votorantim had agreed that the deal would involve an asset swap, as expected by analysts. Camargo will exchange its cement and concrete business in South America and Angola for Cimpor's overseas assets, including in China and India but excluding Brazil, also taking hold of 21 percent of Cimpor's net consolidated debt. Camargo will then swap the assets it received for Votorantim's stake in Cimpor. The decision by CMVM may address some concerns by Brazil's antitrust regulator Cade, which has been analysing Votorantim and Camargo Correa's purchases of stakes in Cimpor since 2010, when the two frustrated an acquisition attempt by Brazilian steelmaker CSN. Camargo Correa's buyout of Cimpor could help competition in Brazil by reducing Votorantim's market share. Cimpor shares closed 0.3 percent higher on Tuesday at around 5.42 euros, outperforming the broader market in Lisbon that fell 1.1 percent. Link this Share this Digg this Email Reprints

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