Italtile makes offer for 15%-20% of Ceramic Industries
Tuesday, 29 May 2012
Italtile has submitted a conditional offer to the board of Ceramic Industries (CIL) to acquire between 15% and 20% of the company's issued share capital from shareholders.
The proposed consideration is R130 per CIL share‚ in cash.
Italtile said on Monday, 28 May 2012, that it values its sound relationship with CIL and has a long history of purchasing tiles‚ sanitaryware and baths from CIL.
In order to support Italtile's growth objectives‚ the Board would like to strengthen its relationship with CIL‚ as a key supplier to the Company‚ through the acquisition by Italtile of a strategic shareholding in CIL.
The proposal is subject to conditions including the successful outcome of a due diligence exercise‚ the support of the CIL board and to Italtile receiving some formal assurances that CIL will be in a position to support the growth strategies of Italtile‚ which includes receiving assurance of the continued involvement of the current management of CIL in that business‚ and the necessary regulatory and legislative approvals.
Italtile shareholders were advised to exercise caution when dealing in the company's securities until a further announcement in this regard is published.