The dispute and court case between Sika, the Burkard family and Saint Gobain is over after an agreement was reached between all parties. All pending litigation has now been terminated.
The dispute started three and a half years ago when Saint Gobain tried to acquire the Burkard family’s 17% share of Sika, which would have given Saint Gobain 51% voting rights and in turn full ownership of Sika. Following lengthy negotiations, Saint Gobain now owns 10.75% of Sika.
The future relationship between Saint Gobain and Sika will be on both shareholder and business levels. The two groups will continue their substantial existing business relationship and seek to expand it further into areas of mutual benefit, while preserving and respecting each group’s economic and legal independence.
“The Board and Group Management of Sika welcome this positive outcome,” says Paul Halg, Chairman of the Board of Directors of Sika and Paul Schuler, CEO of Sika:
“This solution is immediately accretive for our shareholders and paves the way for a new chapter in our success story. Sika remains committed to a strong S&P investment grade credit rating and the introduction of a modern governance structure will provide Sika with a solid base to accelerate its growth. The biggest thanks go to all our employees who with their dedication and loyalty made the great success of Sika and this solution possible.”
Chairman and CEO of Saint Gobain, Pierre Andre de Chalendar, comments: “This is a very positive settlement for Saint Gobain, both from a financial and a strategic perspective. We materialise a substantial positive net result in excess of EUR 600-million for our shareholders. We also retain a minority stake in a great company and will enhance the relationship between the two groups.”
For more information, contact Sika on +27 (31) 792 6500 or via www.sika.co.za.
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