BERN: The Swiss company Sika AG stated that it has generated CHF 5 billion of revenue in 2014, suspended trading of its shares on the Swiss stock market today. Until today the shares had been performing reasonably well after dropping 29% in December 2014 after a controversial deal to buy a controlling stake in the company was announced.
The drama began when the heirs of the founder, the Burkhard family, agreed to sell their 16.1% stake in the company to a rival French company, Saint Gobain at an 80% market premium. The problem was the same deal was not offered to other shareholders, which include the Bill and Melinda Gates foundation. This 16.1% stake comes with turbocharged voting rights of 52%, which probably explains the willingness of Saint Gobain to pay such a premium for it.
The Board were not party to the deal and say this has undermined their confidence in the Burkhard family. In addition they say they do not see many synergies and are concerned Saint Gobain will use the majority voting rights to its own advantage at the expense of other shareholders.
