Thursday, February 4, 2016

Mexican Slim last addressing FCC forcing a takeover bid – Yahoo Finance Spain

By Carlos Ruano

MADRID (Reuters) – Mexican businessman Carlos Slim last these days its final assault on the Spanish group FCC, probably I come derived from a supervening takeover if, as is likely, than the ownership of 30 percent of its capital, said one person familiar with the situation.

Slim, participating in FCC through its partnership Carso, currently states have a 27.429 percent of the shares of FCC, which awaits approval by the securities and Exchange Commission for a capital increase of 709 million euros that he says.

the subscription of the increase, to which both Slim as the second shareholder and historical representative of the group created by his father, Esther Koplowitz (22.44 percent), have committed to attend, their shares remain stable.

But according analysts, ensuring the operation makes it highly likely that reaches Slim exceeding the legal threshold of 30 percent that forces launch an offer if you buy the rights that are not signed in market.

Although technically the employer may request a plácet three months to return to lower its stake below the level which requires a takeover bid, it seems that his latest moves suggest a firm commitment to take control definitively in Spanish.

with a floor action set at six euros (the price of enlargement ensuring), Carso announced on January 12 it had bought 2.9 million shares of the construction when its price exceeded the price of enlargement

the main obstacle to an eventual sale. – for some the fact that justifies the delay in the approval of the prospectus of enlargement – is that when in November 2014 Slim entered the capital of FCC signed a shareholders agreement with Esther Koplowitz for which neither could exceed 29.99 percent of capital within four years.

the person familiar with the operation said relations between the two shareholders are quite fluid and assume a change pact to facilitate the operation and eventual approval of the prospectus next enlargement agreed in mid-December.

a spokesman for FCC consulted by Reuters declined to comment, as did a spokesman for Slim from Mexico while it was not possible to contact a representative of Esther Koplowitz.

Predictably, if they go to expanding the current major institutional investors, Slim does not have to make a large investment in a possible takeover and clear the way for possible future purchases have already exceeded the legal threshold control.

the FCC shares reacted to the news with strong gains. At 1528 local time, the titles of the construction soared 10.3 percent to 6.88 euros.

A ROUND OPERATION

Based on the legislation Slim should provide in case of a takeover bid at least the highest paid by the bidder in the past 12 months (7 euros in the latest acquisition). But even priced a euro above the fixed enlargement, the business can be considered “round” for the employer.

Predictably, if they go to the extension the main current institutional investors with euro below the hypothetical bid, Slim will not have to make a large investment in a possible takeover and clear the way for possible future purchases have already exceeded the legal threshold control.

When he came to the rescue of Esther Koplowitz late 2014 signing a vital capital, the Mexican billionaire has invested 650 million euros to take over 25.6 percent of the capital and outperform the historical shareholder control.

at that time, the price EUR 9.75 per share (taking into account the rights issue and the price of enlargement) paid was considered balance by including a heavy discount on the price, which then was around 12 euros.

with the purchase of new shares in the orbit of the seven euros or six of enlargement, the Mexican company will make half their previous involvement and have higher returns on your investment, currently unrealized losses to contribute to a price around six euros.

in addition, in the 14 months since it came into FCC, Slim has managed to secure control of real leg FCC, Realia, at a time in which I peep the first signs of recovery in a grounded for nearly a decade sector.

After signing a capital increase and swapped into equity an equity loan, Carso, present at the council of Realia, won a bid rival and has finally launched a bid for 100 percent of the equity value the property at 368.6 million euros, with discount to net asset value of the assets (NNAV) calculated at the end of 2014 at 449 million euros.

(Reporting by Blanca Rodriguez and Robert Hetz)

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