SEOUL, June 11 LS Cable Ltd (006260.KS) signed an
agreement to buy Nasdaq-listed wire and cable maker Superior
Essex Inc SPSX.O for $900 million or $45 per share in cash, the
two companies said on Wednesday.
Once the acquisition is completed, the combined entity will
be the third-largest wire and cable manufacturing company in the
LS Cable, spun off from LG Group in 2003, has been seeking
revenue growth overseas due to a saturated home market. The
acquisition of Superior Essex will help it boost its U.S. market
presence and beef up its product offerings. LS Cable specialises
in power and communication cables.
Expectations of the deal boosted shares in LS Cable, which is
worth about $3.3 billion, 3.45 percent to 105,000 won before the
announcement. The wider Seoul market .KS11 rose 0.41 percent.
LS Cable is paying a 50 percent premium over the year-to-date
average closing price of Superior Essex common stock, the two
companies said in a statement.
U.S.-based Superior Essex is the largest wire and cable
manufacturer in North America. Its core products include magnetic
wire, used in transformers for industrial motors and generators.
"This transaction will make LS Cable a strong global
competitor at the forefront of the ongoing wire and cable
industry consolidation," said John Koo, chairman of LS Cable, in
LS Cable said it expects to start a cash tender offer from
On Tuesday, sources told Reuters Basis Point that LS Cable is
seeking about $750 million in financing for the Superior Essex
The financing is expected to comprise a $400 million
three-year term loan tranche A and a $350 million tranche B that
could also have a three-year maturity.
LS Cable posted a 13.3 billion won net loss in the first
quarter of 2008, swinging from a 47.9 billion won profit a year
(Reporting by Park Jung-youn; Editing by Rhee So-eui and