Prysmian announces intention to launch recommended public offer for Draka, to create a global leading player in the energy and telecom cable industry.
Offer values Draka at €17.20 per ordinary share[1]
Compelling industrial and strategic rationale
New leading player in high voltage, subsea, high-end industrial cables, fibers and optical cables
Global presence in more than 50 countries with over 90 plants and more than 20,000 employees with aggregate 2009 net sales of €5.8 billion
Highly complementary know-how, geographic footprint and product portfolio
No break-up or material divestitures of Draka
Substantial value creation
Significant scope to generate approximately €100 million of annual run-rate synergies within 3 years
Strong platform for future organic growth and industry consolidation
Expected to be earnings accretive from 2011 onwards
Transaction highlights
Offer values Draka at €17.20 per ordinary share[1], consisting of:
- €8.60 in cash per Draka ordinary share; plus
- 0.6595 Prysmian shares per Draka ordinary share
The Offer implies a 25% premium to the closing share price of 13 October 2010 [2] and a premium of 37% to the volume weighted average share price over the 6 months ended 13 October 2010
Implied value of €840 million for 100% of Draka's issued and outstanding ordinary shares, with a total cash consideration of €420 million, and €1.3 billion enterprise value
Draka shareholders will represent up to approximately 15% in Prysmian post-completion of the Offer; Prysmian expects to issue approximately thirty two million of new shares
Support and unanimous recommendation from Draka's Board of Management and Supervisory Board
Irrevocable commitment from Draka's 48.5% shareholder Flint
Closing expected during Q2 2011
[1] Valued at Prysmian's closing price of €13.04 on 19 November 2010
[2] Last date before the rumours of a possible bid from Nexans became widely spread
Draka formally rejects Nexans' unsolicited proposal
We refer to Nexans' unsolicited indicative non-binding proposal as received by Draka Holding N.V. ("Draka") and referred to in Draka's earlier press releases dated 27, 20 and 18 October 2010 (the "Proposal").
After careful review of Draka's strategic alternatives including the Proposal, the Board of Management and the Supervisory Board of Draka hereby reiterate that the Proposal is not in the best interest of Draka and its stakeholders, including its shareholders, and have therefore concluded to now formally reject the Proposal. This is an announcement in accordance with Section 5:25i paragraph 2 of the Dutch Financial Supervision Act (Wet op het financieel toezicht).
toevoeging om 13.17
AMSTERDAM (AFN) - Het Chinese bedrijf Tianjin Xinmao wil kabelbedrijf Draka overnemen. De Chinezen doen een bod van 20,50 euro per aandeel in contanten, ofwel 1 miljard euro in totaal. Dat is hoger dan het overnamebod dat het Italiaanse Prysmian maandag bekendmaakte. Xinmao zal bod gestand doen als 75% aandelen is aangemeld.
