Eletrolux Gets CTI for $692m

Sweden’s Electrolux has agreed to buy 64% of Chilean appliance maker CTI for $691.5m equivalent. Following the announcement of talks last week, the global appliance manufacturer will buy Chilean conglomerate Sigdo Koppers’ 51% stake, as well as 13% from other investors. A tag-along offer to the remaining minority holders, at CLP34.87 ($0.074) per share, will follow. Electrolux will also launch a tender offer for all of the outstanding shares of CTI’s listed subsidiary Somela for CLP325 per share, with CTI committed to tender its 78.5%. CTI’s net income from the sale of its shares in Somela will be distributed to its shareholders through a pre-closing dividend of CLP4.39 per share. CTI will also pay a pre-closing dividend to its shareholders of CLP1.63 per share. Electrolux values CTI at a CLP318bn total enterprise value, a spokesman says. This would indicate a level of 9.3x CTI’s CLP34.17bn 2010 consolidated Ebitda. Morgan Stanley and law firm Carey y Cia advised Electrolux. A Sigdo Koppers official says it did not use an advisor.