Loma Negra hires banks for U.S.-Argentina IPO as early as Sept -sources

Banco Bradesco

06/09/2017 21:05

By Tatiana Bautzer and Guillermo Parra-Bernal 
    SAO PAULO, Sept 6 (Reuters) - Loma Negra Cia Industrial 
Argentina SA, the country's largest cement producer, has hired 
investment banks for an initial public offering that could be 
launched as early as this month, according to three sources with 
knowledge of the plan. 
    Parent company Intercement Brasil SA, whose businesses span 
from Brazil and Europe to northern Africa, wants to sell shares 
of Loma Negra in Argentina and New York to raise cash and cut 
debt, said the people, who requested anonymity to discuss the 
deal freely this week. 
    Loma Negra filed for an IPO with the U.S. Securities and 
Exchange Commission late on Tuesday. Underwriters for the IPO 
include the investment banking units of Morgan Stanley & Co 
 MS.N , Banco Bradesco SA  BBDC4.SA , Bank of America Corp. 
 BAC.N , Citigroup Inc  C.N , HSBC Holdings Plc  HSBA.L , Itaú 
Unibanco Holding SA  ITUB4.SA , according to the SEC filing. 
    Camargo Correa SA, the industrial group that owns 
Intercement, has long considered a partial sale of Loma Negra as 
Argentina slowly lures back foreign investment with President 
Mauricio Macri's market-friendly policies. 
    The move also shows how Camargo Correa's controlling family 
is battling the effects of Brazil's longest recession on record, 
years of rampant borrowing and a corruption probe that ensnared 
the group's engineering unit. 
    Proceeds from the Loma Negra IPO, which could offer as much 
as 30 percent of the company, will be used by Intercement to 
reduce its debt, which totals five times its annual earnings 
before interest, taxes, depreciation and amortization, one of 
the people said. 
    Representatives for Intercement did not immediately comment. 
Newspaper Valor Economico first reported details of the IPO on 
Wednesday. 
    Camargo Correa purchased Loma Negra in 2005 for $1 billion, 
the first in a series of acquisitions to strengthen Intercement 
in emerging markets. Loma Negra was founded in 1926 by Argentine 
businessman Alfredo Fortabat. 
    Reuters reported in December that Camargo Correa had 
contacted investors over a private sale of a minority stake in 
Loma Negra, but talks did not bear fruit.  urn:newsml:reuters.com:*:nL1N1E315R 
    Over the past two years, with Brazil's recession and 
corruption scandals taking a toll on finances, Camargo Correa 
undertook a quick effort to downsize. It has since exited power 
utility CPFL Energia SA  CPFE3.SA  and apparel maker Alpargatas 
SA  ALPA4.SA  in 2015, fetching some $3 billion from the sales. 
    ($1 = 3.12 reais) 
 
 (Reporting by Tatiana Bautzer; Editing by Richard Chang) 
 ((guillermo.parra@tr.com; Tel: +55-11-5644-7714; Mob: 
+55-119-8346-7153; Reuters Messaging: 
guillermo.parra.thomsonreuters.com@reuters.net)) 
 
Keywords: LOMA NEGRA CIASA IPO/