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Brazil's Camargo Correa Provides Details On Bid For Portugal's Cimpor

May, 07 2012

(Brazil/Portugal)  --  InterCement, the cement unit of Brazilian industrial conglomerate Grupo Camargo Correa has provided details about its bid to buy Portuguese cement company Cimpor-Cimentos de Portugal.

Camargo Correa has maintained its March 30 offer of EUR5.5 per Cimpor share. The payment would be made immediately after the offer closes, in cash.

Camargo Correa plans to unify all of its cement operations under Cimpor.  InterCement has assets in South America, while Cimpor has a dominating presence in Africa.

Camargo Correa said that Cimpor's ownership structure is fragmented and "without strategic coherence.” The company said that Cimpor would retain its Portuguese identity, with the same brand, and that it would be strengthened by having a stable ownership structure.

The group said that it plans to offer an exchange of assets to buy out Brazilian cement group Votorantim Cimentos, which owns 21.2% of Cimpor.

InterCement would first transfer to Cimpor all of its assets in South America and Angola, in exchange for most of Cimpor's assets in China, Spain, India, Morrocco, Tunisia, Turkey and Peru.

InterCement then plans to offer those international assets to Votorantim, in exchange for its shares in Cimpor, the statement said. The company said that there's a "very strong possibility" that Votorantim would accept.

Camargo Correa is Cimpor's largest single shareholder, with a 32.9% stake, followed by Votorantim.

Camargo Correa and Votorantim purchased their 53% stake in Cimpor in 2010.


By: Rashmi Kalia (ARI-C NEWS)

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