Saint-Gobain, Sika and the Burkard Family Abandon Legal Dispute
11 Maggio 2018 - 8:31AM
Dow Jones News
By Nathan Allen and Alberto Delclaux
Compagnie de Saint-Gobain SA (SGO.FR) and Sika AG's (SIK.EB)
founding Burkard family have struck an agreement to end their
long-running legal dispute with Sika's management, according to
statements from both companies published Friday.
Under the terms of the agreement Saint-Gobain said it bought
Schenker-Winkler Holding AG, the Burkard family holding company,
for 3.22 billion Swiss francs ($3.21 billion) and subsequently sold
a 7% stake in Sika to Sika for CHF2.08 billion.
Saint-Gobain also said it will retain Schenker-Winkler's
remaining 10.8% stake in Sika for at least two years, while Sika
will have preferential buying rights in the case Saint-Gobain
decides to sell the stake.
Sika, for its part, will call for an extraordinary shareholders'
meeting to propose cancelling its recently acquired 7% stake and
standardizing voting rights so that one share is equivalent to one
vote.
The dispute began in 2014 after the Burkard family agreed to
sell Saint-Gobain a 16% stake in Sika that came with attached
voting rights of 52%, which Sika's management interpreted as a
hostile takeover.
Following a prolonged legal battle a Swiss court ruled in 2016
that the deal would be unlawful and allowed Sika's management to
restrict the family's voting rights.
However, the Burkard family sought to extend its agreement with
Saint-Gobain and continued to propose its own candidates to Sika's
board.
Saint-Gobain-controlled Schenker-Winkler has now said it will
vote in favor of the one-share one-vote proposals.
After the shareholders' meeting the voting rights associated
with Saint-Gobain's 10.8% stake will be reduced to 10.8% from
23.7%, Sika said.
All pending litigation will be ended, Sika said.
Write to Nathan Allen at nathan.allen@dowjones.com and Alberto
Delclaux at alberto.delclaux@dowjones.com
(END) Dow Jones Newswires
May 11, 2018 01:58 ET (05:58 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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