CRH has announced new details on its AdBri takeover. Image: CRH Group
CRH has completed its billion-dollar takeover of AdBri after the Australian company’s shareholders approved the A$1.1 billion agreement.
Under the arrangement, CRH will take over the remaining shares of AdBri not owned by the Barro Group and its associates via a scheme of arrangement.
It comes after the Supreme Court of NSW made orders approving the acquisition from CRH on June 14. The orders followed the Independent AdBri shareholders voting in favour of the scheme with a majority. AdBri’s independent directors had unanimously recommended that the shareholders vote in favour of the proposal.
During the process, AdBri did not receive a superior proposal, and the directors believed the CRH proposal was in the shareholder’s “best interest.”
Samantha Hogg, the deputy chair and lead independent director of Adbri, addressed a meeting in Adelaide on June 12.
In a public statement, Hogg thanked the shareholders for their support of the CRH proposal.
“The Independent Board Committee is pleased with the outcome of today’s Scheme Meeting and with Independent Adbri Shareholders voting to approve the Scheme,” Hogg said.
“This is a strong endorsement from shareholders on the compelling value realised through the transaction and for the next chapter of Adbri. Once the scheme is implemented, Adbri will be part of a global building materials business.
“A combined CRH and Adbri will bring growth opportunities, new talent and innovation to continue to strengthen Adbri’s product offering in Australia. I extend my thanks on behalf of Adbri to all our shareholders for their support of Adbri throughout its long history, as well as our employees, partners, customers and suppliers.”
Earlier this year, AdBri entered a scheme implementation deed with CRH for the latter to acquire the remaining shares Barro Group did not own. Independent Adbri Shareholders will receive $3.20 for each Adbri Share held on the Scheme Record Date.
CRH produce construction materials in global markets. Picture: CRH Group
The deal expands CRH’s presence in Australia while it delivers further resources for the Australian entity with CRH being one of the largest construction materials providers overseas.
On hearing about the approval for CRH’s deal, company chief executive officer Albert Manifold welcomed the agreement.
“We are pleased to receive Independent Adbri Shareholder and Court approval for the proposed acquisition of Adbri in partnership with the Barro family,” he said.
“Adbri is an attractive business with high-quality assets and leading market positions that complement our core competencies in cement, concrete and aggregates while creating additional opportunities for growth and development for our existing Australian business.
“We look forward to working with the Barro family over the coming years to enhance the long-term growth and performance of Adbri.”
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CRH unveil potential proposal to takeover AdBri
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