WCA January 2011

Industry news

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 : nexans.web@nexans.com Website : www.nexans.com Draka Holding NV – The Netherlands Website : www.draka.com

New plant to double production

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 80,000m 2 with 60,000m 2 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 : www.chinahuancable.com

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Wire & Cable ASIA – January/February 2011