In sum, this operation will involve a payment of $ 40.8993, including price and dividends per share of CTI. The transaction, once perfected, would bring in about US $ 315 million in revenueto Sigdo Koppers,and is consistent with the decision of the conglomerate to focus their businesses onmining service and industry sectors, establishing itself as leading strategic supplier of the mining sector.
The Sigdo Koppers S.A.group signed an agreement to sell all of its shares, equivalent to 50.1%, of the company CTI Compañía Tecno Industrial, one of the leading manufacturers of electric home appliances in South America- and of its subsidiary Somela, of which CTI owns78.54%, to the group of Swedish origin AB Electrolux.
The transaction will be carried out by an Initial Public Offering (IPO) by AB Electrolux in the CTI and Somela companies, which would begin within a period of approximately 10 days, extending the offer to all its shareholders, as reported in information sent to the Superintendency of Securities and Insurance.
The share price in the IPO for CTI will be $ 34.8738. Meanwhile, the share price in the IPO for Somela will be $ 325
If thus approved, the Board and CTI Shareholders,xx, this company, also would distribute an interim dividend and an additional dividend, the latter charged to retained earnings at December 31, 2010. These dividends would include the net income from the sale of Somela, plus the earnings of CTI at June 30, 2011. The additional dividend would amount to $ 4.3929 per share and the interim dividend to $ 1.6326 per share.
In sum, this operation would result in a payment of $ 40.8993 per share of CTI, including price and dividends, representing a total volume of the operation of US $ 625 million. Thus, once perfected the transaction, Sigdo Koppers would receive revenues of about US $ 315 million.
The CEO of Sigdo Koppers, Juan Eduardo Errazuriz, said that "the sale of CTI is consistent with the strategic decision of the group to focus its businesses in the areas of services to mining and industry, establishing itself as a leading strategic supplier for the mining sector, field in which it already participates successfully.”
Sigdo Koppers is present in the areas of services to mining and industry through the construction and assembly of major works through Ingeniería y Construcción Sigdo Koppers, rental and sale of machinery through SK Comercial; production of ammonium nitrate and rock fragmentation services through Enaex; and transport of raw materials and logistics through Puerto Ventanas and its subsidiary Fepasa.
The Sigdo Koppers group acquired control of the property of CTI and its subsidiary Somela in 1987, almost 25 years ago. Since then, both companies have shown an accelerating growth, despite stiff competition from global brands with presence in the main countries of the world. The incorporation of AB Electrolux opens new opportunities for development, as this company is recognized as a world leader because of its expertise and innovation.
Currently, CTI is the leading manufacturer of household electric appliances in Chile and Argentina, and one of the most important companies in the region. Together with its subsidiary Somela, the company sells 3.5 million units of products a year.
In its manufacturingplants, located in the towns of Maipú in Chile, and Rosario in Argentina, (Frimetal), CTI manufactures refrigerators, stoves, washing machines and heaters, products that are sold in the local and external markets with own brand names in Chile such as Fensa and Mademsa, GAFA in Argentina, and for the brandsof third-parties in other countries in the region. Meanwhile, Somela manufactures‘lustraspiradoras’, centrifuges, clothes dryers and sells the broadest range of small electric homeappliances.
Meanwhile, AB Electrolux is one of the largest world producers of electric home appliances and appliances for professional use and sells annually more than 40 million products in 150 countries through its multiple and well known brands. With operations in North America, South America, Europe, Asia and Oceania. AB Electrolux products include refrigerators, dishwashers, washing machines, vacuum cleaners and stoves. The company has 51,000 employees worldwide.