Saint-Gobain, the parent company of Norton Abrasives, has approached the board of Australian building materials company CSR with a non-binding indicative offer to acquire all of CSR’s issued share capital by way of a scheme of arrangement. It values the company at $4.3 billion.
The offer is subject to confirmatory due diligence, the entry into binding transaction documents and entry into a scheme implementation deed on customary terms and conditions, including regulatory approvals and CSR shareholders’ approval.
The board of CSR unanimously agreed to pursue the offer at an agreed price of $9 per share but said there is no certainty that the proposal will result in a binding offer for the company.
“Saint-Gobain believes that the combination is an attractive opportunity for both companies, leveraging our long-term partnership with similar business models, cultural fit and development opportunities. This acquisition would be fully aligned with Saint-Gobain’s strategy as a worldwide leader in light and sustainable construction and an opportunity to enter the Australian market,” the company said.
Under the proposal, CSR would be entitled to pay a final dividend of up to $0.25 per share for its financial year ending 31 March 2024, which would be deducted from the cash offer price.
CSR said the proposal follows an earlier indicative offer and a period of negotiation, which included the provision of value impacting due diligence.