Lafarge sells Chile cement and downstream assets?
Lafarge has agreed the sale of its cement and downstream operations in Chile to the Peruvian conglomerate Brescia Group for some US$466m. This is Brescia’s first investment in the cement sector.
The deal values the business at 7.4 times last year’s EBITDA, compared with the 10 times achieved for the Turkish business, which was the previous integrated cement business sold by Lafarge.
Lafarge Chile is currently 84.2 per cent owned by Lafarge, with the remainder of the equity being quoted on the Santiago stock exchange. Brescia is to launch a public offer for the remainder of the shares.
Including the minority, the business is valued at US$555m at the price being received by Lafarge. The deal covers the 1.5Mta ’La Calera’ cement works, a 0.3Mta grinding centre at Puerto Montt and a further grinding plant presently under construction as well as an import terminal. The businesses being sold also include five quarries, a mortar plant and 54 batching plants.
Lafarge acquired its Chilean operations through the acquisition of Blue Circle Industries in 2001. The only asset in Chile being retained by Lafarge is the minority stake in the gypsum joint venture with Etex.
Published under Cement News
