Readymix shares fall as sale deal off

SHARES in Readymix — the Dublin-headquartered cement product and building materials provider — fell by 10% in early trading yesterday on the back of the company announcing that a potential sale of the business is now unlikely to materialise.

The company said last October it had received expressions of interest from a number of third parties which could lead to a takeover offer for the business. However, in an update on that particular issue, Readymix’s management said yesterday that “no firm and fully financed offer has been received” and “no such offer is likely to be received in the short-term.”

“As such”, the company added, “discussions with all third parties have been terminated”.

In its last trading update — published towards the end of January — Readymix (which, although partially public, is predominantly owned by Mexican building multinational group, Cemex) said that it was anticipating a €4 million widening in its full-year operating loss for 2010, to €15m and a €6m widening in pre-tax losses to €20m.

Yesterday’s statement pointed out that trading in the construction industry throughout Ireland “remains difficult”, but that the group “continues to be focused on the careful stewardship of cash resources and on the minimisation of costs.

“These initiatives, together with the support of the majority shareholder, will preserve the group’s position as a leader in the building products sector in Ireland and the Isle of Man,” it added.

By midday yesterday Readymix s shares had dipped by 10% to 18c but later recovered to 20c.