SHI Sig Plc

By Anthony O. Goriainoff

Shares in SIG PLC fell on Thursday after the company said that it has agreed to terminate the proposed sale of Building Solutions (National) Ltd. to Kingspan Group PLC with immediate effect, and that the disposal won't proceed.

The London-listed building-materials supplier said that due to prevailing market conditions it hasn't been possible for both companies to agree to commercial terms for the extension of the agreement after the U.K. Competition & Markets Authority referred the disposal to a Phase 2 investigation in April.

The CMA investigation is anticipated to conclude in October, and the date in the agreement would need to be extended in order for the investigation to be carried out. The sale and purchase agreement was due to expire on July 7, the company said.

The company said it is currently reviewing a number of options regarding its Building Solutions business.

In October, the company said it would sell its building-solutions business to Kingspan Group for 37.5 million pounds ($45.9 million).

Shares at 0725 GMT were down 2.76 pence, or 11%, at 23.04 pence.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

May 21, 2020 03:50 ET (07:50 GMT)

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