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Michelin files draft with French regulator to acquire SIPH

Published 07 June 2017

Michelin has filed a draft offer with the French securities regulator (Autorité des Marchés Financiers – AMF) through its subsidiary Compagnie Financière Michelin SCmA (CFM) and acting in concert with SIFCA to acquire 1 million shares in Société Internationale de Plantations d'Hévéas (SIPH) at a price of €85 per share.

Long-standing and reference SIPH shareholders, CFM and SIFCA respectively hold 23.81% and 55.59% of SIPH's capital and 25.33% and 62.89% of the voting rights and, in concert, 79.40% of SIPH's capital and 88.22% of the voting rights as of today.

The proposed offer price would give rise to a 41.8% premium on the last closing SIPH share price prior to the filing date (June 5, 2017) and a premium of 49.6% and 57.8% versus the volume weighted average SIPH share price over the previous 60 and 250 trading days, respectively.

The primary aim of the friendly offer is to enable CFM and SIFCA to strengthen their ties and raise their stake in SIPH's capital in light of the increasingly important role that West Africa is playing in global natural rubber production against a backdrop of intensified competition between the players in these markets.

Following the public offer, and if the requisite conditions are met, CFM will request a squeeze-out of any remaining minority shareholders of SIPH.

On June 6, 2017, the Board of Directors of SIPH unanimously decided to issue a favorable opinion on the draft simplified public offer, which it believes is aligned with the interests of the company, its shareholders and its employees, and recommends that SIPH shareholders tender their shares to the offer.

Oddo & Cie acts as presenting and guaranteeing bank of the simplified public offer.

Source: Company Press Release