Lafarge Moldovan unit raises capital to MDL445m

Lafarge Moldovan unit raises capital to MDL445m
Published: 11 February 2008

Lafarge Ciment, has raised its capital to 445 million lei (US$39.8m) through a MDL148.3m share issue, the Moldovan Securities Commission CNPF said on Friday.  
 
Subscribers to the issue were 11 companies, including the majority shareholder Finarge 26, Lafarge’s subsidiary, and the municipality of Rezina, where  Lafarge Ciment is situated, CNPF said in a statement.  
 
Lafarge bought 51% of Ciment in 1999 for US$200,000 and pledged to repay the company’s debt of MDL38m and to invest US$12m in the modernisation of the plant.  Lafarge owns 94% in the company now and has invested EUR10.05m in the plant so far. 
 
Ciment, situated in northeastern Moldova, produced 821,100t of cement in 2006, up by 30% from 2005, and covered 75% of domestic demand in 2006.  
 
Lafarge said earlier that it would inject EUR30m-40m into  Lafarge Ciment in 2006-2009 aiming to increase further its share of the local market.