Key shareholders consider selling stake in Iskitimcement

Key shareholders consider selling stake in Iskitimcement
Published: 30 July 2007

Eduard Taran, the key shareholder in Siberia-based RATM Group, discussed the details of a proposed cement holding to be built around Iskitimcement (ISKC), the group’s main asset. In addition to Iskitimcement, the holding would include Angarskcement (RATM is in litigation with Sibir Cement over control of the company) and four new cement plants in Russia and Kazakhstan. Construction of the first new plant is to start this year, according to Taran, with the holding’s overall cement output projected at 10mn tons pa by 2011.  
We do not have enough data to assess whether this plan is realistic, but we believe that RATM should at least be able to complete the construction of a new 1.3Mta cement line at Iskitimcement, which is scheduled for launch in 2009. The company currently has installed capacity of around 1.7Mta of cement pa, and produced 1.56Mt in 2006.  
In addition to discussing production growth plans, Taran said he is in talks with the government - the Federal Property Management Agency holds 25.5% in Iskitimcement - over the possible sale of a stake to an international strategic investor. Taran said three major global cement companies are interested, but did not disclose their names.  
We do not have a formal recommendation on Iskitimcement, which was quoted at $2,950-$3,400 yesterday on the RTS Board.