CSR Limited Finalizes Acquisition by Saint-Gobain - 9 July 2024
CSR (CSR) Share Update July 2024 Tuesday 9th
CSR Limited Implements Scheme of Arrangement with Saint-Gobain
CSR Limited (ASX: CSR) has officially implemented its scheme of arrangement with Compagnie de Saint-Gobain, marking a significant change in the company's ownership and leadership structure.
Instant Summary:
- CSR Limited acquired by Saint-Gobain via scheme of arrangement.
- CSR shareholders receive $8.88 cash per share.
- Additional $0.12 cash dividend per share paid on 1 July 2024.
- Changes in CSR's Board of Directors.
- CSR shares delisted from ASX effective 10 July 2024.
Scheme Implementation
CSR Limited announced today, 9 July 2024, that the proposed acquisition by Compagnie de Saint-Gobain has been successfully implemented through a scheme of arrangement. This marks a significant milestone in CSR's corporate history.
Under the terms of the scheme, CSR shareholders received a cash consideration of $8.88 per share for all CSR shares held on the scheme record date of 2 July 2024. Additionally, shareholders benefited from a permitted dividend of $0.12 per share, which was paid on 1 July 2024.
Board of Directors Changes
As part of the implementation, significant changes have been made to CSR's Board of Directors. All existing directors, except Julie Coates, have resigned. New appointments include Paul Dalton, Benoit d’Iribarne, Sara Lom, Natarajan Sreedhar, and Ludovic Weber, who will now steer the company under its new ownership.
Delisting from ASX
Following the acquisition, trading in CSR shares on the ASX was suspended on 19 June 2024. CSR has announced its intention to be removed from the official list of the ASX, effective before the opening of trading on 10 July 2024. This move signifies the end of CSR's public trading era and its transition into a privately held entity under Saint-Gobain.
Shareholder Information
For further details, shareholders are advised to refer to the Scheme Booklet. Any questions can be directed to the Shareholder Information Line, available Monday to Friday, 8.30am to 5.30pm (Sydney time).
The acquisition by Saint-Gobain is expected to bring strategic advantages and synergies, potentially enhancing CSR's market position and operational efficiency. However, the delisting from the ASX might impact liquidity for shareholders accustomed to trading CSR shares publicly. The cash consideration of $8.88 per share provides immediate value to shareholders, which could be seen as a positive outcome.
Investor Reaction:
Investor reactions have been mixed. Some investors appreciate the immediate cash return, while others express concerns over the loss of a publicly traded option. Analysts believe the acquisition could lead to operational improvements under Saint-Gobain's management.
Conclusion:
Investors should consider the implications of CSR's delisting and the strategic benefits of the acquisition by Saint-Gobain. Staying informed about future developments and the performance of CSR under new leadership will be crucial for making informed investment decisions.