MULTINATIONAL Cemex said yesterday it has offered to buy out the remaining 40 per cent of Irish company Readymix that it does not own, sparking a surge in the price of its subsidiary’s normally moribund shares.
Cemex said it has told directors it is prepared to offer 22 cent for outstanding Readymix shares that it does not own, valuing the company at almost €24 million and putting a €9.5 million price tag on the 40 per cent stake held by other investors. The news drove the Readymix share price from an opening quote of 3 cent to 19 cent at the close. The shares traded below 3 cent for the last year.
Cemex made the offer through its Spanish subsidiary, which was recently fined just over €500,000 for competition law offences in Spain. Meanwhile, in the same sector, Irish multinational CRH issued bonds worth €500 million to investors on Wednesday night, shortly before the close of the US markets at 10pm.
It will use the money to refinance short-term debt. The new bonds have a seven-year term and an interest rate of 5 per cent. They were issued in response to demand from the market.
The interest rate is the second lowest ever attracted by CRH bonds. The offer was taken up by investors from Britain, the EU and Switzerland. This was the second euro denominated bond issued by the Irish company. In May 2009, it completed a €750 million issue with an interest rate of 7.4 per cent. The bonds will be listed on the Irish Stock Exchange.
