Closing of Madeco acquisition
Paris, October 1st, 2008 – Nexans, the worldwide leader in the cable industry, announces the closing, on September 30, of the acquisition of the cable business of Madeco, the cable market leader in South America, following the signing of a final agreement with Madeco on February 21, 2008.
With this acquisition, Nexans acquires a leading position in energy cables in a high growth area.
This acquisition has been financed through:
- the issuance to Madeco of 2.5 million shares of Nexans, with Madeco being committed not to transfer its shares until September 30, 2009
- a combination of cash payment and assumption of debt in the total amount of 448.5 million USD (subject to adjustment based on final accounting statements as of September 30, 2008).
Further to the issuance of 2.5 million shares of Nexans, Madeco holds approximately 9% of the share capital of Nexans.
In accordance with the eighth resolution adopted at the annual shareholders' meeting of Nexans on April 10, 2008, Mr. Guillermo Luksic, Chairman of Madeco, has been appointed to the board of Nexans for a 4-year term, effective as of September 30, 2008.