8-K

CRH PUBLIC LTD CO 8-K Report (Oct 30, 2009)

Filed October 30, 2009For Securities:CRH

Summary

CRH Public Limited Company (CRH) has filed a Form 6-K to address a press release issued by Semapa SGPS, S.A. Semapa claims that conditions have been met under their shareholders' agreement to initiate a valuation of their joint venture, Secil, and potentially exercise an option to purchase CRH's stake. CRH vehemently disputes this, stating that the conditions for such actions have not arisen and intends to contest Semapa's claims through arbitration via the International Chamber of Commerce. This dispute centers around CRH's 45.126% shareholding in Secil, a significant Portuguese manufacturer of cement and ready-mixed concrete with operations in Tunisia, Lebanon, and Angola. The potential valuation and forced sale of CRH's investment in Secil represents a material development that could impact CRH's financial position and strategic holdings. Investors should monitor the arbitration proceedings closely.

Key Highlights

  • 1CRH is responding to a press release from Semapa SGPS, S.A. concerning their joint venture, Secil.
  • 2Semapa claims conditions are met to value Secil and potentially buy out CRH's stake.
  • 3CRH disputes Semapa's claims and states the conditions for valuation and buyout have not arisen.
  • 4CRH will contest Semapa's actions through arbitration at the International Chamber of Commerce.
  • 5Secil is a major Portuguese cement and ready-mixed concrete producer with international operations.
  • 6CRH holds a significant minority stake (45.126%) in Secil, acquired in June 2004 for €429 million.
  • 7The dispute could lead to a forced sale or significant valuation adjustment of CRH's Secil investment.

Frequently Asked Questions

CRH is issuing a response to a press release from Semapa SGPS, S.A. Semapa claims that the terms of their shareholders' agreement have been met, allowing them to initiate a valuation process for their joint venture, Secil, and potentially exercise an option to purchase CRH's stake in Secil. CRH disputes this claim, asserting that the conditions for such actions have not been met.

Secil is a major Portuguese manufacturer of cement and ready-mixed concrete. It also has operations in Tunisia, Lebanon, and Angola. CRH acquired a 49% shareholding with joint management control in Secil in June 2004 for a total consideration (including share of net debt) of €429 million. Currently, Semapa holds 49.67% of Secil's share capital and CRH holds 45.126%.

CRH plans to contest Semapa's claims through arbitration. They will refer the matter to the International Chamber of Commerce in Paris. CRH expresses confidence in the arbitration process and believes its position will be vindicated.

The dispute could lead to a forced valuation of CRH's investment in Secil, potentially at a price unfavorable to CRH, or a buy-out that CRH contests. The outcome of the arbitration and any subsequent valuation or transaction will impact CRH's financial results and the value of its assets. Investors should closely monitor the progress of the arbitration proceedings.