Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

Australia's CSR stock rises after $2.8 billion takeover offer from Saint-Gobain

Published 02/21/2024, 03:43 PM
Updated 02/21/2024, 07:17 PM
© Reuters. FILE PHOTO: The Logo of Saint-Gobain is seen at the company headquarters in the financial and business district of La Defense, near Paris, France, September 14, 2023. REUTERS/Gonzalo Fuentes/File Photo

By Scott Murdoch and Sameer Manekar

(Reuters) -Australia's CSR Ltd shares rose a further 5% on Thursday as the building products maker came into play following a A$4.30 billion ($2.81 billion) non-binding takeover proposal from France's Saint-Gobain (PA:SGOB).

The Sydney-based firm said it had received a A$9.0 per share offer from the French group, which represented a premium of 13.2% to CSR's last close.

CSR shares soared 17.4% on Wednesday before trading was paused following a media report of the takeover offer.

CSR is one of Australia's oldest companies, having been established in 1855, initially as a sugar refining business, before its diversification into building products.

"CSR is currently providing Saint-Gobain with confirmatory due diligence access to progress to a binding transaction at an agreed offer price of A$9.00 per share," the Sydney-based construction materials firm said in a statement.

"Following review of the proposal, the CSR board unanimously resolved to pursue the proposal," it added.

Shares of Saint-Gobain, a French building materials maker, closed up 0.18% on Wednesday, reversing earlier losses.

The proposal allows CSR to pay a final dividend of up to A$0.25 per share for the financial year ending in March which would then be deducted from the cash offer price, CSR added.

"The combination is an attractive opportunity for both companies," Saint-Gobain said in a statement late on Wednesday, adding that the acquisition would give the French company an opportunity to enter the Australian market.

The proposal is subject to approval from CSR shareholder and Australia's foreign investment review board, among others.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

CSR carries a A$187.1 million provision on its book, as at Sept. 30, 2023, to cover any future asbestos-related liabilities that may arise from the company's sale of asbestos-related products in the past.

($1 = 1.5284 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.