Votorantim Cimentos sells bonds as it seeks takeovers

Votorantim Cimentos sells bonds as it seeks takeovers
Published: 24 December 2009

Votorantim Cimentos Brasil SA, the cement unit of Brazil’s Grupo Votorantim, sold BRL1bn (US$561.5m) of local bonds as it seeks to expand abroad.

The bonds mature in 10 years, according to the terms of the sale posted on the website of Brazil’s association of financial institutions, known as Anbima.

The company, which controls 40 per cent of Brazil’s cement market, is raising the funds after agreeing to acquire 38.4 per cent stakes in both Argentina’s Cementos Avellaneda SA and Uruguay’s Cementos Artigas SA last week. Votorantim Cimentos Chief Executive Officer Walter Schalka said in September the company was seeking assets abroad.

The bond sale is part of a strategy to extend debt maturities, Votorantim said in an e-mailed statement.