Votorantim Cimentos, a stakeholder on CP Cimento group from Koranyi Ribeiro family, is against the negotiations to sell a 27% equity in CCRG (Companhia de Cimento Ribeirao Grande) to the Greek group Titan in a US$80m deal.
Rather Votorantim wants to take over the control of CCRG through a R$500m agreement of which above R$300m would be used to settle the debts of Santo Estevao, the holding of Koranyi Ribeiro family that controls CCRG, with Votorantim. Over a second stage Votorantim would pay above US$80m to acquire the stake prior held by Bradesco and sold to Santo Estevao. If the deal goes ahead Votorantim is to end up by having 90% on the voting capital CCRG, currently 93.2% from CP Cimento that also has a 88.6% equity on it.
Also Votorantim would pull out from CP, where it has 13.41% to be passed on to Santo Estevao. Sao Paulo state based CCRG runs a 1.5Mta cement capacity and also one of the largest limestone mines in Brazil.
In addition to CCRG, CP Cimento has 74.9% of Cimento Tupi teamed with Lafarge (20%) and Latcem (5%). Through CCRG and Tupi, CP Cimento has four cement plants in Rio de Janeiro, Minas Gerais and Sao Paulo with capacity for 3.7Mta. Debt ridden CP reportedly owes R$450m over the short term.