Inteco seeks buyer for its cement stake, Russia

Inteco seeks buyer for its cement stake, Russia
Published: 15 July 2008

Inteco, owned by Elena Baturing, is seeking a buyer for its stake in the cement business. The offer was sent out almost a year ago, according to a source close to Inteco. The deal organizer is Aquila Capital Group, which recently sent out documentation to all potential buyers; according to a source close to Aquila, the winner will be chosen via a closed tender (no date set as yet).
A source from one of the companies that received the offer says that Inteco is selling two factories in the Krasnodar territory: Atakaicement and the Verkhnebakansk cement factory, as well as three deposits of non-ore materials in the Samara, Kaluga, and Tula regions.
Inteco spokesman Gennadi Terebkov said: "Inteco isn’t selling assets. It is selling a stake in the company to which the assets are being transferred, and the size of that stake has yet to be determined." According to Terebkov, the purpose of the sale is to raise capital for investment.
A source at one of the companies invited to bid in the tender says that Inteco is hoping to come away with around $200 million.
Baturina moved out of the cement business in early 2005, selling five factories to Filaret Galchev, owner of Eurocement Group, for $800 million. Eighteen months later, Inteco started taking an interest in cement again: prices had almost tripled during that time, to 3,000 rubles per ton, and cement shortages during the construction season reached 20%.