Cimpor sells minority stake in subsidiary

Byjirong

Updated Wed, 30 Dec 2015 19:47:43 GMT

Cimentos de Portugal, SGPS, S.A., a subsidiary of Cimpor, has announced the sale of a 16% participation of Yguazu Cementos (Paraguay) for the amount of US$35 million. This reflects a 14x EBITDA multiple. Following the conclusion of the operation, Cimpor will continue to hold a participation of 51%, thereby continuing to keep control of the supsidiary, while the remaining share capital will be held by Cimpor’s Paraguayan partner, Concret Mix.

The sale of this minority stake forms part of a set of initiatives the Company has been putting forward, including the stoppage of underused plants, the sale of concrete units and other non-strategic assets, the adaptation to market new contexts, the adequacy of pricing and products, the reduction of costs and expenses and the adjustments of the corporate structure. The company aims to strengthen its capital structure and increase profitability, thereby focusing on its strategic development.