Vallourec: will not subsidise takeover bid for Ascoval
(CercleFinance.com) - The Vallourec group said on Monday evening that it does not to intend to subsidise (for 51 million euros), the takeover bid of the Ascoval steel factory made by Altifort.
"After close examination, Vallourec communicated to the judicial administrators, in charge of the procedure, that it is not possible to accede to this request. To do so, would be contrary to the Group's interests, since Altifort would oblige Vallourec to purchase steel at prices more than 30% higher than other sources of supply, putting at risk the Group's French and European activities, which have been making considerable efforts over recent years in an extremely difficult market context. The same goes for the investment grants requested by Altifort," Vallourec said.
On review of the takeover plan Vallourec also considers that the project's financing needs were "largely underestimated," requiring recourse to hypothetical lenders and investors.
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"After close examination, Vallourec communicated to the judicial administrators, in charge of the procedure, that it is not possible to accede to this request. To do so, would be contrary to the Group's interests, since Altifort would oblige Vallourec to purchase steel at prices more than 30% higher than other sources of supply, putting at risk the Group's French and European activities, which have been making considerable efforts over recent years in an extremely difficult market context. The same goes for the investment grants requested by Altifort," Vallourec said.
On review of the takeover plan Vallourec also considers that the project's financing needs were "largely underestimated," requiring recourse to hypothetical lenders and investors.
Copyright (c) 2018 CercleFinance.com. All rights reserved.