Success of Nexans' offering of bonds convertible into and/or exchangeable for new or existing shares (OCEANE)
Paris, July 15, 2004 - Nexans closed (payment-delivery) its offering of OCEANE bonds (Visa AMF n°04-652), launched on July 6, for an amount of 135 million euros after the exercise of the over-allotment option of 15 million euros.
The issuance was subject to very strong investor demand which exceeded 17 times the final offering amount. This debt issuance is represented by 3 552 632 bonds of 38 euros in principal and in conversion/exchange ratio, which represents a 30% premium over the Nexans share price the day of the launch. The bonds, which bear interest at the rate of 3.125% per annum, are redeemable at par value on January 1, 2010 (or the next following business day).
The conclusion of this offering is contemporaneous with the finalization of the acquisition of the Liban Cables Group, the acquisition of Cabloswiss as well as the closing by Nexans of the tender offers in its two Korean subsidiaries.
In Lebanon and Egypt
Nexans has strengthened its position in its Lebanese and Egyptian affiliates : Liban Cables and International Cables Company (ICC), acquiring full control and leaving only a small percentage of capital held by minority shareholders.
Liban Cables, leader on the Lebanese cable market, had sales of 48 million US dollars in 2003 (56% in the energy market and 43% in the telecom market) and employs 334 people. In Egypt, ICC employs 519 people and had 2003 sales of 27 million US dollars (59% in the energy market and 41% in the telecom market).
"This acquisition is completely in line with Nexans' external growth strategy which aims at reinforcing its leading position in the Middle-East area which benefits from a strong growth potential", said Gérard Hauser, Chairman and CEO of Nexans.
These companies will be included in the Groups' consolidated accounts as of July 1st, 2004.
Nexans, subject to the authorization of the competition authorities, will acquire 100% of Cabloswiss, an Italian company which employs 66 people and had sales of 12 millions euros in 2003. Cabloswiss is specialized in communication cables for industry (automation and robotics, electronics, instrumentation and control, medical equipment).
Further to the tender offers made by Nexans for the shares in its two Korean subsidiaries, as announced last June 16, the Group has increased its shareholding in Nexans Korea and Kukdong Electric Wire. Nexans has accordingly raised its shareholding in Nexans Korea from 50% to 82 % and in Kukdong Electric Wire from 50.3% to 53.5%.
Nexans is the worldwide leader in the cable industry. The Group brings an extensive range of advanced copper and optical fiber cable solutions to the infrastructure, industry and building markets. Nexans cables and cabling systems can be found in every area of people¿s lives, from telecommunications and energy networks, to aeronautics, aerospace, automobile, railways, building, petrochemical, medical applications, etc. With an industrial presence in 29 countries and commercial activities in 65 countries, Nexans employs 20. 000 people and had sales in 2004 of euros 4.9 billion. Nexans is listed on the Paris stock exchange.