SAINT-GOBAIN (EPA:SGO) - Sika, Burkard family and Saint-Gobain find overall agreement

Transparency directive : regulatory news

11/05/2018 06:45

PRESS RELEASE

May 11th, 2018

          SIKA, BURKARD FAMILY AND SAINT-GOBAIN FIND OVERALL AGREEMENT

* Compagnie de Saint-Gobain (Saint-Gobain) acquired Schenker-Winkler Holding AG
  (SWH) from the Burkard family

* Saint-Gobain/SWH sold a 6.97% stake in Sika AG (Sika) to Sika for a total
  consideration of CHF 2.08 billion

* Saint-Gobain retains 10.75% interest in Sika through SWH for a minimum of two
  years

* Sika calls shareholders' meeting to introduce unitary share class,
  cancellation of opting-out and elimination of 5% transfer restrictions and to
  cancel the 6.97% shares acquired from SWH

* Parties terminate all legal proceedings

* Sika and Saint-Gobain intend to extend their existing business relationship

Sika, the Burkard family and Saint-Gobain have signed agreements which
terminate and resolve their dispute to the common benefit of all parties
involved and that of their respective shareholders and stakeholders. The
following has been agreed:

Saint-Gobain acquired SWH, Sika acquired registered shares representing 6.97%
of Sika's share capital

Saint-Gobain acquired all outstanding shares of SWH from the Burkard family for
a purchase price of CHF 3.22 billion. It reflects an increase of above CHF 500
million from the purchase price agreed in December 2014 between Saint-Gobain
and the Burkard Family, taking into account the increase in Sika's value since
2014. Sika purchased a 6.97% stake in Sika from SWH (representing a 23.7%
voting interest) for a total consideration of CHF 2.08 billion. This amount
contains a CHF 795 million premium over the market value as of May 4th, 2018.

Termination of litigation, special audit, special experts

All pending litigation will be terminated. Furthermore, it is intended to
propose to the shareholders of Sika to terminate the mandate of the Special
Experts.

Introduction one-share, one-vote

Sika will call for an extraordinary shareholders' meeting (EGM) for June 11,
2018 and will propose to:

* cancel the 6.97% shares acquired from SWH by way of capital reduction
* convert all shares into a single class of registered shares ("one share-one
  vote") in a ratio 1:60 (bearer share based)
* eliminate the 5% transfer restrictions
* eliminate the opting-out clause

SWH, fully owned by Saint-Gobain at the time of the EGM, will vote in favor of
all resolutions. Urs F. Burkard, Jürgen Tinggren and Willi Leimer have
resigned from the board of directors of Sika. All independent directors will
continue to serve the company and in time will seek to strengthen the board
with new appointees.

Future relationship between Saint-Gobain and Sika

The future relationship between Saint-Gobain and Sika will be on both the
shareholder and the business levels:
Saint-Gobain will become a shareholder of Sika through SWH. After the EGM it
will hold 10.75% of votes and capital interest in Sika. The parties have agreed
on lock-up (2 years) and stand-still obligations (up to 10.75% for four years,
up to 12.875% for the following two years) with regard to Saint-Gobain's stake
in Sika. In case of an intended sale, these shares will first be offered to
Sika up to 10.75%.
The two groups will also continue their substantial existing business
relationship and seek to further expand it to areas of mutual benefit while
preserving and respecting each group's economic and legal independence.

Sika will fund this transaction through a bridge loan committed by UBS.
Subsequently, Sika intends to optimize its capital structure through the
issuance of debt and debt-like  securities, while maintaining both the
investment grade rating as well as the financial flexibility to fund the
defined growth strategy of the company.

Paul Hälg, Chairman of the Board of Directors of Sika and Paul Schuler, CEO of
Sika: "The  Board and Group Management of Sika welcome this positive outcome.
This solution paves the way for a new chapter of our success story. Sika
remains committed to a strong S&P investment grade credit rating. The
introduction of a modern governance structure will provide Sika with a solid
base to accelerate its growth. The biggest thanks go to all our employees who
with their dedication and loyalty made the great success of Sika and this
solution possible."

Urs F. Burkard, spokesman for the Burkard family: "We are pleased that
Saint-Gobain, as a significant Sika customer, is now the company's largest
shareholder. The solution agreed between the parties involved takes into
account the interests of all shareholders and forms the basis for continuing
Sika's success story. The primary concern of the family has always been to
ensure Sika's success and long-term prosperity."

Pierre-André de Chalendar, Chairman and CEO of Saint-Gobain: "This is a very
positive settlement for Saint-Gobain, both from a financial and a strategic
perspective. We materialize a substantial positive net result in excess of
EUR600 million for our shareholders. We also retain a minority stake in a great
company and will enhance the relationship between the two groups."

ABOUT SAINT-GOBAIN

Saint-Gobain designs, manufactures and distributes materials and solutions
which are key ingredients in the wellbeing of each of us and the future of all.
They can be found everywhere in our living places and our daily life: in
buildings, transportation, infrastructure and in many industrial applications.
They provide comfort, performance and safety while addressing the challenges of
sustainable construction, resource efficiency and climate change.

EUR40.8 billion in sales in 2017
Operates in 67 countries
More than 179,000 employees
www.saint-gobain.com
@saintgobain

Analyst/Investor relations

Vivien Dardel              +33 1 47 62 44 29
Floriana Michalowska       +33 1 47 62 35 98
Christelle Gannage         +33 1 47 62 30 93

Media relations

Laurence Pernot            +33 1 47 62 30 10
Susanne Trabitzsch         +33 1 47 62 43 25

Analyst/Investor Conference Call, chaired by Mr. Pierre-André de Chalendar,
Chairman and Chief Executive Officer and Mr. Guillaume Texier, Chief Financial
Officer, on May 11, 2018 at 8:30 a.m. Paris time (GMT + 1)
Dial-in: + 33 (0) 1 72 72 74 03 (code 60116692#)
Please dial in 5 to 10 minutes prior to the scheduled start time
Replay: + 33 (0) 1 70 71 01 60 (code 418759740#), from 10:30 a.m. Paris time
until June 15, 2018.

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