Azerbaijan Investment Company and Holcim are completing Garadagh share deal

Azerbaijan Investment Company and  Holcim are completing Garadagh share deal
Published: 02 January 2008

The realisation of memorandum between  Holcim and Azerbaijan Investment Company (AIC) on introduction of Azerbaijan Investment Company (AIC) into  Garadagh Cement is being completed.  
 
Anar Akhundov, AIC Chief Executive, informed Fineko/abc.az that AIC has already received sale-purchase agreement from  Holcim and hopes to sign it in January.  
 
“We have reached consensus with  Garadagh Cement shareholders on acquiring 10% of the stake. At the first session of Supervisory Board in 2008 we hope to receive investment decision on the deal,” A Akhundov said.  
 
The memorandum supposes acquiring 10% of  Garadagh Cement capital. That will allow AIC to participate in reconstruction of the plant and to construct new cement plant.  
 
New plant’s cost with annual capacity 1Mt, will be EUR 150m. It will be constructed on the basis of technology without wastes of dry cement production. Azerbaijan’s important term is reconstruction of the present plant because measures for reduction of ecologic harm are insufficient.  
 
Annual country’s demand in cement is 4Mt. Holcim still has 79.5% of Garadagh Cement shares, European Bank of Reconstruction and Development – 10% of shares and other shares belong to small shareholders.