InterCement sells Portugal operations in further deleveraging

To help reduce its indebtness, InterCement is leaving the European market. Controlled by Mover Participações (current holding company of the Camargo Corrêa group), the company agreed on Friday to sell its cement and concrete operations in Portugal and Cape Verde to Turkish group Oyak, according to Valor International.

While the price of the divestment was undisclosed, the deal is believed to have cost a little over US$800m, according to industry analysts.

The divestment will see the ownership of three integrated plants and two grinding units, with a combined capacity of 9.1Mta of cement, in Portugal move to the Oyak group. In Cape Verde the trading operations with a port terminal are the key asset in the deal although concrete facilities and an aggregate quarry are also included. InterCement also sold 40 concrete distribution centres, 13 quarries and two mortar plants.

InterCement will use the funds to pay down short-term debt and other more expensive loans. As of June, the company had a debt level of EUR1.8bn.

In a statement to the market, the company said that the deal with Oyak is "part of the program of strengthening the capital structure of InterCement, which included the monetization of assets to reduce its financial leverage."