Prysmian's new challenge: the Group will acquire General Cable
The transaction is expected to close by the third quarter of 2018, subject to the approval of General Cable’s shareholders representing at least a majority of the outstanding shares, regulatory approvals, and other customary conditions.
Prysmian Group will acquire General Cable for $30.00 per share in cash in a definitive merger agreement.
The transaction has been unanimously approved by each company Board of Directors and is expected to close by the third quarter of 2018.
This transaction values General Cable at $3 billion, including debt and certain other General Cable liabilities, and represents a premium of approximately 81% to the General Cable closing price of $16.55 per share on July 14, 2017, the last day of trading before General Cable announced its review of strategic alternatives.
“The acquisition of General Cable represents a landmark moment for Prysmian Group and a strategic and unique opportunity to create value for our shareholders and customers”
said Valerio Battista, Prysmian Group CEO.
“Through the combination of two of the premier companies in the cable industry we will be enhancing our position in the sector, by increasing our presence in North America and expanding our footprint in Europe and South America”
On the other side, John E. Welsh, III, Non-Executive Chairman of the Board of General Cable, stated:
“Today’s announcement is the culmination of a thorough and robust review of strategic alternatives undertaken by the General Cable Board of Directors. We are confident that this transaction maximizes value for our shareholders”
Michael T. McDonnell, General Cable President and Chief Executive Officer thinks that this combination represents an ideal strategic fit to meet new opportunities and challenges in the evolving wire and cable worldwide industry.
He said: “I am extremely proud of our people’s efforts to transform our business over the past several years, including rationalizing the asset base and refocusing on core businesses, streamlining our supply chain, and accelerating profitable growth and innovation in key segments. Today’s announcement is a testament to the team’s hard work and tireless dedication.”
Read full press release here and connect to replay podcast by access code. You can download here complete General Cable acquisition presentation for all details.