8-K

CRH PUBLIC LTD CO 8-K Report (Apr 25, 2012)

Filed April 25, 2012For Securities:CRH

Summary

CRH Public Limited Company (CRH) has announced that Semapa (SGPS, S.A.) has notified CRH of its intention to acquire CRH's 49% stake in the Portuguese cement joint venture, Secil. This acquisition is set to occur on May 15, 2012, and will be executed based on the terms of an Arbitral Tribunal award previously issued in Paris. This development follows an arbitration process initiated after CRH and Semapa were obliged to complete the sale and purchase of CRH's Secil shares at an equity price of €574 million. CRH had originally acquired its stake in Secil in June 2004 for approximately €329 million plus net debt. The filing provides context on Secil's operations and financial performance, including 2011 EBITDA of €102 million on sales of €507 million, with net debt of €142 million.

Key Highlights

  • 1Semapa notified CRH of its intent to acquire CRH's 49% shareholding in Secil.
  • 2The acquisition is scheduled to take place on May 15, 2012.
  • 3The transaction price is based on an ICC Arbitral Tribunal award of €574 million in equity value.
  • 4CRH originally invested €329 million in Secil in June 2004, plus net debt.
  • 5Secil is a Portuguese cement and ready-mixed concrete manufacturer with operations in Tunisia, Lebanon, and Angola.
  • 6Secil reported €102 million in EBITDA on €507 million in sales for the full year 2011.
  • 7Secil's net debt stood at €142 million as of December 31, 2011.

Frequently Asked Questions

The main purpose of this 8-K filing is to inform investors that Semapa has formally notified CRH of its intention to acquire CRH's 49% stake in Secil, a Portuguese cement joint venture, based on an arbitration award.

The sale is expected to result in CRH receiving €574 million in equity value for its 49% stake in Secil. This represents an exit from an investment made in 2004. Investors will be looking for details on how CRH plans to utilize these proceeds and the impact on its overall financial position.

Secil is a Portuguese cement and ready-mixed concrete manufacturer with international operations. CRH is selling its stake as a result of an arbitration award that obligated both CRH and Semapa to complete the transaction. The details of the arbitration process are not fully disclosed in this filing, but it signifies a resolution to a dispute or disagreement regarding the ownership of Secil.

Semapa has indicated its intention to acquire CRH's shares on May 15, 2012. This is the planned closing date for the transaction based on the terms of the arbitration award.