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Tue June 18 2024

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Tribunal resolves CRH’s €574m JV dispute

11 Aug 11 A tribunal has said that CRH must sell Semapa its 49% shareholding in the Secil joint venture.

The two parties are now obliged to complete the sale and allow the purchase of CRH's shareholding in Secil at an equity price of €574m (£505m) in 180 business days.

Buildings materials group CRH and Semapa have been in dispute over their Secil joint venture since October 2009. Semapa had sought to exercise a call option over CRH’s share of the joint venture.

Arbitration between the two parties culminated in a decision and award by a tribunal in Paris. The tribunal concluded in its award that, while both parties breached provisions of the JV shareholders agreement, Semapa's exercise of a call option for the purchase of CRH's 49% shareholding in Secil is valid.

The tribunal dismissed claims by Semapa for compensation.

CRH had acquired the 49% shareholding with joint management control in Secil in June 2004 for an equity consideration of €329 million plus a share of net debt at acquisition of approximately €100 million.

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