Reports of takeover approach see Readymix shares soar by 40%
In a brief stock exchange announcement, the Dublin-listed company — which is predominantly owned by Mexican multinational group, Cemex — confirmed that it is in discussions “which may or may not lead to an offer for the entire issued share capital of the company”, following approaches “received from third parties”.
The company added that discussions are at an early stage and it is not clear if they may lead to an actual offer being made. It said a further announcement will be made “when appropriate”.
On the back of yesterday’s announcement, Readymix’s share price rose by nearly 41.2% — or 7c — to 24c at close. That positive movement took the stock — in a single day’s trading — from just above its 12-month low of 16c to just below its 12-month high of 27.5c.
Back in August, the company — as anticipated — reported a €6.6 million pre-tax loss for the first half of the year, adding that fresh capital could be needed for long-term development plans. Prior to that results announcement, the company’s management had already indicated that another full-year loss, for 2010 as a whole, was on the cards.
They added that the “exceptionally challenging” trading conditions evident since 2007 had continued into 2010 and, due to the continuing weakness in the housing and commercial property sectors here, it expects the poor trading conditions to continue into next year. No dividend payment was recommended to shareholders, at the interim stage this year, in a bid to conserve the firm’s cash resources.
Previously, the company also said that it would continue to pursue cost savings and said that a lack of availability of sufficient capital “may adversely affect the group”.
