Buzzi Unicem SpA has concluded a contract for the acquisition of 35 per cent stakes in two Algerian companies, which respectively own the cement plants of Hadjar Soud and Sur El Ghozlane.
On June 21, 2006, Buzzi Unicem won the bid for the acquisition of the stakes in the two companies. Buzzi Unicem will pay a total EUR110m. The Algerian Government will keep the ownership of the remaining 65 per cent of the share capital.
According to the contract, Buzzi Unicem will have responsibility for managing the two production units and will appoint two of the five board members.
The share transfer is scheduled to be executed in January 2008, at the same time as the payment. Hadjar Soud is based in eastern Algeria, while Sur El Ghozian is 130km south of Algiers.