Cimpor has sold a 16 per cent stake in Ygauazu Cementos of Paraguay for a total of EUR32m, the company announced in a statement. The sale reflects a 14x EBITDA multiple. Cimpor retains a controlling stake with a 51 per cent participation, with the remaining share capital to be held by already existing Paraguayan partner Concret Mix.
The sale of the minority stake is among many of the self-help measures being undertaken by Cimpor to strengthen its capital structure and increase profitability. Such initiatives include the stoppage of under-used plants, the sale of concrete units and other non-strategic assets, adapting to new market conditions, reducing costs and expects and adjustments to its corporate structure.
The company has also recently announced the sale of quarries in Brazil to Polimix Concreto for BRL100m (US$25.35m).