Extract
CEMEX Offers to Acquire Rinker for US$12.8 Billion.
MONTERREY, Mexico -- CEMEX, S.A.B. de C. V. ("CEMEX") (NYSE: CX) today announced that it intends to make an offer to acquire all of the outstanding shares of Rinker Group Limited ("Rinker") (ASX: RIN, NYSE ADR: RIN) for US$13.00 per share, equivalent to A$17.001 per share, in cash. The offer represents a 26.2% premium over the three month volume weighted average price of Rinker's shares and a premium of 27.0% over its closing price2 on the Australian Stock Exchange on October 27, 2006. This represents a multiple of 9.2 times Rinker's EBITDA in the twelve months to the last reported quarter, June 30, 2006. The total enterprise value of the transaction, including Rinker's debt, is approximately US$12.8 billion, equivalent to A$16.8 billion1.
The combination of CEMEX and Rinker will create one of the world's largest and most profitable building materials companies with pro forma revenues of US$23.2 billion and more than 67,000 employees in more than 50 countries. Lorenzo H. Zambrano, Chairman and CEO of CEMEX, said, "Combining Rinker with CEMEX will generate value for the shareholders of both companies. Rinker's strong presence in key regions of the U.S., which complements ...See the full content of this document
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