Breaking News
Black Friday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Saint-Gobain sells Sika stake, formally ending bitter takeover battle

Stock MarketsMay 27, 2020 12:15
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The Swiss chemical group Sika company logo is pictured on a bag of SikaTop in their training center in Le Bourget near Paris

By John Revill

ZURICH (Reuters) - Saint-Gobain (PA:SGOB) has sold its stake in Swiss construction chemicals maker Sika (S:SIKA), the French company said on Wednesday, netting it 1.54 billion euros ($1.69 billion) and formally ending one of Europe's most bitter takeover battles.

Attempts to unseat Sika's board and blocking directors' pay were among the tactics deployed by Saint-Gobain's allies during its campaign, which began in 2014 when it announced a deal to buy the controlling stake of Sika's founding family.

Sika's board opposed the deal, saying it saw no advantage from becoming part of a French conglomerate while other shareholders were being disadvantaged. The family's stake had special voting rights that gave it control.

Sika investors, including the Bill & Melinda Gates Foundation, also opposed the takeover. The tussle was fought out during long and expensive court cases.

A truce emerged in 2018 when Saint-Gobain, the family's Schenker-Winkler Holding and Sika came to an agreement which gave Saint-Gobain 10.75% of Sika's shares, but not control.

The deal was subject to a two-year stock lockup, which elapsed this month.

Saint-Gobain sold 15.2 million shares through a private placement to institutional investors for 2.56 billion Swiss francs ($2.64 billion). The deal meant it made a profit of 1.54 billion euros since May 2018. [nFWN2D80VW]

The cash would strengthen its balance sheet and increase liquidity amid the market uncertainty caused by the global coronavirus pandemic.

Sika did not exercise its option to buy the shares because it wanted to keep its options open for acquisitions.

"It was in the common interest of Sika and Saint-Gobain to have a successful placement of the shares," a Sika spokesman said.

    "We are pleased that this is the final end of the takeover attempt. The final chapter has now been written and we can now move forwards."

($1 = 0.9093 euros)

($1 = 0.9687 Swiss francs)

Saint-Gobain sells Sika stake, formally ending bitter takeover battle
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email