Saturday, February 21, 2009

Saint-Gobain asks shareholders for ВЈ1.3bn new cash

Saint-Gobain, the global construction materials group based in France, wants its shareholders to stump up ВЈ1.3bn in fresh cash for new shares that are to be created.

On top of that, they have learnt that there will be a halving of the dividend paid on their existing shares.

Behind the woes is a global downturn St-Gobain’s core housing and construction markets which have eaten into its full-year profits.

“Saint-Gobain expects 2009 to be an extremely challenging year, particularly in the first six months," Saint-Gobain told Reuters today. “The world's biggest building materials company said it would launch a rights issue by creating 108m new shares.”

Existing shareholders have until March 6 to sign up.

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