Wendel and Saint-Gobain Establish the Principles and Objectives of Their Long-Term Cooperation
COURBEVOIE,
Saint-Gobain are satisfied that the agreements signed in
allowed Saint-Gobain to develop in favorable conditions. The representation
of Wendel on Saint-Gobain’s Board of Directors, the creation of a Strategy
Committee and the resulting high-quality discussions have helped to establish
a constructive dialogue and efficient governance, and are likely to create
favorable conditions for the Group’s development over the long term.
Wendel, as leading shareholder, and Saint-Gobain, through the agreement
of its Board of Directors, therefore wish to confirm clear governance
principles in a spirit of continuity while marking a new stage in the
strategic cooperation and regular dialogue between the two groups.
Wendel and Saint-Gobain reiterate their commitment to the following
principles:
– Support for the strategy approved by the Board of Directors and
implemented by Executive Management;
– Respect for Saint-Gobain’s independence and equal treatment for all
shareholders; and
– Stability of the shareholder base, Wendel’s contribution to the Group’s
projects and its long-term commitment.
Wendel and Saint-Gobain affirm their determination to implement the
business model defined by Saint-Gobain’s Board of Directors which serves a
clear ambition : to become the leading player in sustainable housing, by
offering solutions that make buildings energy-efficient and more
environmentally-friendly while improving comfort and quality of life for all,
and by maintaining its exemplary approach to all aspects (economic,
environmental, social and societal) of sustainable development.
Saint-Gobain’s business model is built on three main pillars:
Construction Products, Building Distribution and Innovative Materials. Each
of these businesses provides the Group with specific advantages which
together will help drive growth, notably through targeted acquisitions.
As well as an extensive global footprint including in emerging countries,
the Construction Products sector offers the Group leading-edge technical
expertise, particularly in terms of energy efficiency. This can be used to
support the development of other Group businesses throughout the world. The
sector’s construction products and solutions also allow Saint-Gobain to meet
the fast-growing needs of emerging countries resulting from demographic and
economic change and rapid urbanization, and to provide mature economies with
sustainable habitat solutions.
Thanks to its close-up knowledge of customers and market trends, the
Building Distribution sector contributes to the entire Group. Growth in this
sector is driven by new store concepts and new countries.
The third pillar of the model is the Innovative Materials sector, which
includes Flat Glass and High-Performance Materials. This sector facilitates
access to innovation, as well as to emerging countries. It acts as a
technological leader for the entire Group, thanks to a diverse portfolio of
materials, patents and processes which have applications in a wide variety of
sectors and will also be used in building homes for tomorrow.
On
2015:
– organic growth in excess of the Group’s historical average organic
growth rate, accompanied by a targeted acquisitions policy;
– increase in the Group’s profitability to above its historical average;
– completion of the strategic refocus on Habitat and withdrawal from
Packaging (Verallia);
– stronger positions for the Group in high value-added solutions;
– faster-paced development for the Group in
The implementation of this strategy will be pursued while respecting the
need for strict financial discipline and a clear policy of shareholder
returns.
In terms of the Group’s governance, Wendel currently holds three out of
sixteen seats on Saint-Gobain’s Board of Directors, a representation that
will remain unchanged going forward. If Wendel were to hold less than 10% of
Saint-Gobain’s voting rights, it would be entitled to only one seat on the
Board. A director representing Wendel has also been appointed to each of
Saint-Gobain’s Board committees where Wendel plays an important role and this
representation would therefore remain unchanged.
Wendel and the Group’s Executive Management will consult with each other
in due time, notably as regards any draft resolution to be put to the vote of
shareholders’ meetings. Neither of the two groups will publish a press
release nor publicly adopt a position concerning the other party without
having previously informed the other party of its intention to do so.
Wendel confirms that it has no plans to increase its shareholding, either
directly or indirectly, alone or in concert, beyond 21.5% of Saint-Gobain’s
capital. This provision will not apply (i) if the number of Saint-Gobain
shares is reduced or if Saint-Gobain buys back its own shares, with Wendel’s
previously held number of shares remaining unchanged, or (ii) if a stock
dividend is paid leading to an accretion of Wendel’s interest. These
provisions regarding changes in Wendel’s shareholding will no longer apply if
any other shareholder acting alone or in concert crosses the threshold of 11%
of Saint-Gobain’s capital, or if a tender offer is launched for Saint-Gobain.
Finally, Wendel agrees not to join a tender offer if the terms of the offer
have not been approved by Saint-Gobain’s Board of Directors and to abstain
from any action that may provoke, encourage or help any such offer to succeed
as well as from publicly recommending such an offer, it being specified that
Wendel shall nevertheless remain free to tender all or some of its shares if
such an offer were to occur.
Wendel shares Saint-Gobain’s desire to promote a stable, high-quality
shareholder base. Consequently, should Wendel consider transferring shares
representing at least 5% of Saint-Gobain’s capital, on one or more occasions,
to a limited number of buyers, it shall inform Saint-Gobain’s Executive
Management of its intention. Executive Management would then have one week to
submit an acquisition proposal of the shares concerned, by a third party or
by the Group, remaining valid for a reasonable period of time. Following
discussions between the Chairman of each party, Wendel may accept
Saint-Gobain’s proposal or pursue another offer with financial and key
strategic characteristics that it considers in good faith are better aligned
with its own interests. Saint-Gobain may ask Wendel to arrange a prior
meeting with buyer(s) that would have been identified. In any case, the
Executive Management of Saint-Gobain and Wendel will use their best efforts
to make the transaction a success, in a spirit of cooperation and
partnership. In the event of a tender offer for Saint-Gobain, this right of
first offer will not apply to any Saint-Gobain shares tendered by Wendel to
an offer declared valid by the market authorities.
The items described above provide a favourable basis for the development
of the long- term partnership between Saint-Gobain and its leading
shareholder, Wendel. It is understood that in the unlikely event that Wendel
should notice a disagreement with the majority of Saint-Gobain’s Board of
Directors on an issue considered of importance, Wendel and Saint-Gobain would
use their best efforts to jointly define, within a period of one month, an
amicable solution that allows Wendel to continue fulfilling its role on the
Board. If Wendel requested that a resolution not approved by the Board be put
to the vote of a shareholders’ meeting of Saint-Gobain, this would obviously
constitute a disagreement on an issue considered of importance. If the
disagreement persisted, Wendel and Saint-Gobain would be discharged from all
of their commitments stated herein and the directors representing Wendel
would be led to leave the Board at the end of the following shareholders’
meeting.
The aforementioned commitments are valid for a period of ten years from
the end of the shareholders’ meeting of
The English language version of this text is a free translation from the
original, wihch was prepared in French. All possible care has been taken to
ensure that the translation is an accurate representation of the original.
However in all matters of interpretation of information, views or opinion,
the original French language version of the document takes precedence over
the translation.
Analyst and investor contacts
Saint-Gobain Wendel
Florence Triou-Teixeira +33-1-47-62-45-19 Laurent Marie +33-1-42-85-91-31
Etienne Humbert +33-1-47-62-30-49 Olivier Allot +33-1-42-85-63-73
Vivien Dardel +33-1-47-62-44-29
Press contacts
Saint-Gobain Wendel
Sophie Chevallon +33-1-47-62-30-48 Anne-Lise Bapst +33-1-42-85-63-24
Christele Lion +33-1-42-85-91-27
SOURCE Saint-Gobain and Wendel