USA-based Mississippi Lime Co has stepped back from purchasing a stake in Chilean cement producer Cementos Bío Bío (CBB). This will enable Yura Chile, part of Peru's Gloria Group to follow up on its improved offer for an additional stake in CBB.
Earlier this month Mississippi Lime Co had presented a letter of intent for a non-binding offer of US$1.89/share for 100 per cent of CBB to its controlling shareholders, the Briones, Rozas and Stein families, which valued the company at almost US$500m.
However, it revised the indicative offer for full ownership of CBB, "after months of due diligence and review of the company's operational and financial performance, MLC and CBB's principal shareholders shared a non-binding letter of intent in May 2024 subject to conditions. That indicative offer, and its conditions, expired during this year," it explained.
"The revised indicative offer, which is subject to all of the terms and conditions set out in the non-binding letter of intent, attributes an equity valuation of US$400m to CBB," the company added.
Yura intends to increase its current stake to 40 per cent. However, according to CBB's directors, that following the takeover by the Peruvian company, the liquidity of CBB stock market could be reduced and the future value of the shares held by each shareholder would be affected. In addition, they pointed out that the increase in Yura's stake would affect the cement company's competitive performance, which would have a direct impact on its development plans, and on the value of its shares.
