May 15, 2018 / 5:45 AM / a year ago

Sika to issue 1.5 bln Sfr in bonds to buy own shares from Saint-Gobain

ZURICH, May 15 (Reuters) - Sika said it is selling a 1.5 billion Swiss franc ($1.50 billion) convertible bond, with the proceeds going towards buying its own shares back from Saint-Gobain.

The bonds, which will be due in 2025, are expected to carry a coupon between 0.00 percent and 0.30 percent per annum, the company said.

French building materials company Saint-Gobain and Swiss peer Sika said on Friday they had reached an agreement to end a long-standing legal dispute, which will result in Saint-Gobain acquiring a large stake in Sika.

Under the deal, Sika will buy a 6.97 percent stake in itself back from Saint-Gobain, and then cancel the shares. ($1 = 1.0013 Swiss francs) (Reporting by John Revill; Editing by Kim Coghill)

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