Vinci closes Cegelec acquisition

Vinci has completed its acquisition of mechanical and electrical engineer Cegelec from Qatar-government owned investment fund Qatari Diar. Following the all-share deal, Qatari Diar holds 5.78% of Vinci, making it the company's largest shareholder after group's employee savings funds.

The acquisition was first mooted in August following the signing of a memorandum of understanding to enter merger talks. This was followed by a merger agreement in January.

Vinci issued 21 million new shares to fund the deal. Their current value based on stock market prices is € 925 million, but for the purpose of the transaction they have an agreed value of € 861 million. In addition to these, Vinci is paying the investment company with 10,5 million shares it held as a result of a share buy-back programme.

At current stock market prices the shares have a value of € 1,39 billion, although for the purpose of the transaction, both parties have agreed their value be put at € 850 million. The deal also includes a cash payment of € 10,9 million to Qatari Diar, which is equivalent to the interim dividend that would have been paid on the new shares in December.

Cegelec is active in 30 countries around the world and has some 25000 employees. Its revenues in 2009 were € 2.8 billion, 44% of which was generated outside France.