German firm eyes H+H
Published: 01 November, 2010
GERMANY/DENMARK: Danish construction firm HH International (H+H) has been approached by Xella regarding a takeover, according to the Børsen newspaper.
An international building materials firm, Xella operates in around 20 countries. The company is active in three business segments: building materials, raw materials and drylining.
The company is said to have been ready to pay some 640m kroner for H+H, the equivalent of stock market value of 65 kroner per share.
At the close of trading last Friday, H+H's shares had risen to 64 kroner per share, a increase of 43% from its price at the start of the day.
As part of the deal, Xella would take on H+H's 617m kroner debt, making the deal worth a total of 1.25bn kroner.
H+H's board confirmed it had received a buyout offer, following a number of rumours in the market.
The bid has been linked to reports that a handful of struggling listed Danish companies will be delisted in the coming months as private equity firms take advantage of their sharply reduced market value.
Xella is owned by the private equity funds Goldman Sachs Capital Partners and PAI Partners.
H+H International's board of directors decided that it was in the best interest of the company and its shareholders to explore the approach, said Anders C Karlsson, chief executive officer and chairman of the board of directors. There was no forthcoming information about any time-frame for this deal.
Xella's bulding materials business sells aerated concrete (AAC) and calcium-silicate blocks under the brands Ytong, Hebel, Multipor and Silka. In raw materials, the company sells lime and limestone under the Fels brand for steel manufacturers, the construction industry and the environment sector. In drylining, the company sells eco-friendly gypsum fiber wallboard under the brands Fermacel and Aestuver for insulation and fire protection.