WCA January 2011

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Industrynews
Wire & Cable ASIA – January/February 2011 9
Nexans to enter into
discussions with
Draka Holding NV
Nexans has obtained the commitment of Flint Beheer BV, subject to certain
conditions, to tender its shares of Draka Holding NV if Nexans makes an offer to
acquire Draka Holding NV.
Nexans has agreed to make a proposal to Draka Holding NV to negotiate an
agreement for a recommended cash offer to purchase all of the outstanding
ordinary shares of Draka Holding NV at a price of €15 per share, subject to
certain conditions.
Frédéric Vincent, chief executive officer of Nexans, said: “The contemplated
transaction would contribute to the consolidation of the cable sector, improve the
competitiveness of Nexans’ European asset base and reinforce its positions in
specialty cables.”
Nexans intends to begin negotiations with Draka Holding NV with a view to
reaching an agreement as soon as possible.
However, asset manager Ed Manie at Keijser Capital says that Nexans’ offer for
Draka Holding NV could prove to be a hostile opening bid that could trigger a
bidding war between Nexans and Italian rival Prysmian.
While Draka’s big shareholder Flint Beheer, which owns 48.48% of the company’s
shares, has backed Nexans’ offer, Manie believes that the remaining shareholders
will await to see the further developments around the proposed acquisition.
Draka and Prysmian cancelled last year’s merger talks as they could not agree on
the major conditions of the deal.
Nexans – France
Fax: +33 15669 8484
Email:
Website:
Draka Holding NV – The Netherlands
Website:
Hu An Cable Holdings, wire and cable manufacturers in China, has started the
construction of a new plant under a newly-incorporated subsidiary, Hu An (Wuxi)
Cable Technology Co, to strengthen its cable production capabilities.
The plant occupies 80,000m2 with 60,000m2 floor space, and is located adjacent
to the group’s existing plant in Yixing city.
The group has already placed orders for two production lines for ultra-high
voltage power cables from Finland and Germany.
Costing RMB338 million ($67 million), the new plant will comprise three
production lines for 110kV and above power cables, imported from Finland and
Germany, and two domestic production lines for mid-voltage power cables.
The project will be financed using net proceeds from the company’s initial public
offering with the balance from internal funds and bank borrowings.
Hu An Cable Holdings Ltd – China
Website:
New plant to double production