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Stockwatch- CIMA (Malaysia) The French continue to woo Cima

Corporate: The French continue to woo Cima

By Risen Jayaseelan

The new offer by France's Vicat Group for the assets of Cement Industries of Malaysia Bhd (Cima) is for a 49% stake in the latter's assets, sources say. This is in line with what Cima had counter proposed to Vicat after the latter (Vicat) had in early March made an offer to buy 51% of Cima's assets. "This means that there is little reason why Cima should not accept this offer from a conceptual standpoint. Things, however, could go wrong if there is no agreement on valuation," says a source. It is understood that Vicat has also agreed to Cima's terms on the issue of management control. It is believed that Vicat is asking for three key management positions in Cima and is fine with not having the position of managing director. Vicat is also asking for directorships at Cima's subsidiaries — another point which Cima's board had no problem with earlier. Two other terms are believed to be that if the Cima/Vicat joint venture does agree to go overseas, then Vicat will be allowed to have a majority stake in the foreign venture. And the other is the first right of refusal clause: In the event Cima's shareholders wish to sell more of their shares, Vicat will be given the first right to buy them. The new offer by Vicat is indicative of its seriousness in acquiring Cima.

for rest of article, read http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_c8519ce5-cb73c03a-29d65b00-a749fb1b

posted by gsg @ 1:35 PM