Lafarge, the world leading construction materials manufacturer, has launched a bid for the outstanding shares of its Romanian subsidiary, LAFARGE ROMCIM.
LAFARGE ROMCIM is the leading cement producer in Romania, and is quoted on the RASDAQ, the Bucharest Stock Exchange. At present, shares in the capital of the company is controlled by LAFARGE ROMANIA (51%), the Public (37%) and financial institutions holding (12%).
Through the operation, which has received the agreement of the Romanian CNVM (the national Stock Exchange Commission), Lafarge will substantially increase its holding in the capital of its subsidiary, and above all demonstrate the confidence it has for the medium and long term economic perspectives in Romania. There is, indeed, significant potential for expansion in the Romanian construction market, the current annual per capita consumption (180kg) being relatively small. In addition, reforms undertaken by the Government will allow the pursuit of growth.
This bid will give shareholders the opportunity of withdrawing at a reasonable price (78000 Lei per share), which represents a significant premium compared to the current share quotation. The subscription period has begun on Saturday 7th November, 1998 and will close on Thursday 26th November, 1998.
ROMCIM sales turnover reached US$150 million in 1997. It has four high capacity cement plants (Medgidia, Tirgu Jiu, Hoghiz and Alesd) all using modern technology, as well as activities in lime and gypsum. The company has 40% of the national market.
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