InterCement sells Portugal, Cape Verde units to OYAK for $795 mln (updated)
26/10/2018 14:21
(Updates with details on size of InterCement after transaction,
background)
By Tatiana Bautzer and Andrei Khalip
SAO PAULO/LISBON, Oct 26 (Reuters) - Turkish conglomerate
OYAK has agreed to acquire Brazilian cement firm InterCement's
units in Portugal and Cape Verde for around 700 million euros
($795 million), a source close to the matter said on Friday.
InterCement announced the deal, which includes three cement
factories, two mills and other assets operating under its brand
as well as that of Portugal's Cimpor, earlier on Friday without
disclosing its value.
InterCement, owned by Brazilian conglomerate Camargo Correa
SA, bought Cimpor six years ago.
InterCement will keep its operations in South America as
well as in Egypt, Mozambique and South Africa after the
transaction.
Camargo had considered an initial public offering of its
operations in Europe and Africa, Reuters reported earlier this
year, expecting to replicate the success of the IPO of its
Argentinian unit, Loma Negra Compania Industrial Argentina.
urn:newsml:reuters.com:*:nL1N1UL10S urn:newsml:reuters.com:*:nL2N1PI1XB
But Camargo decided it could obtain a higher price in a sale
of its largest units to a strategic investor, the source added,
asking for anonymity due to the sensitivity of the matter.
A second source said the IPO plans were hindered by the
financial crisis that hit Argentina and contributed to the loss
of Loma Negra shares, and also by a drop in the value of euro
zone stocks this year.
"This transaction is part the debt reduction plan previously
announced by InterCement and Cimpor in response to an adverse
market context in South America, particularly Brazil,"
InterCement said in a statement.
($1 = 0.8804 euros)
(Reporting by Tatiana Bauzer in Sao Paulo and Andrei Khalip in
Lisbon
Additional reporting by Can Sezer in Istanbul and Paula Laier in
Sao Paulo
Editing by Paul Simao)
((andrei.khalip@thomsonreuters.com; (351) 213-509-209; Reuters
Messaging: andrei.khalip.thomsonreuters.com@reuters.net))