The pact, valued at $400 million including assumed debt, callsfor Dallas-based Centex to acquire Republic for a cashconsideration equal to $17.50 per share plus a pro rata portion ofthe Premier termination fee if it is received by Republic. It alsoprovides for a $10 million break-up fee payable by Republic if itenters into a merger agreement with Centex and the deal isterminated under certain circumstances.


The Centex-Republic agreement falls on the heels of aRepublic-Premier definitive merger pact. Premier is an affiliate ofIntegrated Capital Associates Inc. of San Francisco. Premier isseeking to acquire Republic via a stockholder payout of $19 pershare. If Premier fails to complete its financing arrangements andclose the merger, Premier is to pay liquidated damages og $12million to Republic. Centex came to the table as a back-up measureafter Republic rejected its proposal and decided to initiate amerger with Premier.


"Naturally, we are disappointed that we are not the winningbidder, but we continue to have a serious interest in Republic,"says Dick Jones, Centex president and CEO.


Centex, a producer and distributor of cement, gypsum wallboardand concrete in aggregates, is approximately 65% owned by CentexCorp

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.