LSR Group is selling its Slantsy plant in the Leningrad region of Russia to the country’s leading cement producer, Eurocement Group. The parties have signed preliminary sales agreement with Eurocement having obtained approval from Federal Antimonopoly Service of the Russian Federation (FAS).
Control of plant operations is expected to be transferred later this month.
LSR said in a statement on Friday that the deal is part of its strategy to “focus on projects with highest returns on invested capital and fast growing real estate development business, thus maximising value for shareholders.”
The company will use most of the proceeds to reduce its debt and make it 100 per cent ruble-based by the end of the year. Net debt/EBITDA will be reduced to less than 1.0.