Votorantim Cimentos sells bonds as it seeks takeovers

Byswb

Updated Tue, 29 Dec 2009 00:00:00 GMT

Votorantim Cimentos Brasil SA, the cement unit of Brazil's Grupo Votorantim, sold 1 billion reais ($561.5 million) of local bonds as it seeks to expand abroad.

The bonds mature in 10 years, according to the terms of the sale posted on the Web site of Brazil's association of financial institutions, known as Anbima.

The company, which controls 40 percent of Brazil’s cement market, is raising the funds after agreeing to acquire 38.4 percent stakes in both Argentina's Cementos Avellaneda SA and Uruguay's Cementos Artigas SA last week. Votorantim Cimentos Chief Executive Officer Walter Schalka said in September the company was seeking assets abroad.

The bond sale is part of a strategy to extend debt maturities, Votorantim said in an e-mailed statement.

Votorantim and Brazilian cement maker Camargo Correa Cimentos SA are interested in investing in Cimpor-Cimentos de Portugal SGPS SA, newspaper Expresso reported Dec. 7, without saying where it obtained the information. Cia. Siderurgica Nacional SA, known as CSN, on Dec. 18 said it made an unsolicited bid for Cimpor of 3.86 billion euros ($5.6 billion).