Cementir sells the Italian operations to HeidelbergCement, of the Italcementi group, for 315 million. The announcement was made this morning, Wednesday 19 September, but the rumors of the news were circulating on the Stock Exchange so much so that Cementir shares made large increases on the market since Monday when Cementir shares jumped by 7%, a rally which continued on Tuesday with + 6,9% to the highest since the beginning of the year at 6,7 euros. After the opening in Piazza Affari on title is among the most purchased, above 7,2 euros, up 6,74%. Buzzi-Unicem also rose, leading the increases in Blue Chips by +5,3%.
Cementir sells all Italian activities to Italcementi (HeidelbergCement group) for 315 million. The surprise announcement by the Caltagirone group company explains that the sale concerns 100% of Cementir Italia including the subsidiaries Cementir Sacci and Betontir.
“Following this operation – explains Francesco Caltagirone jr, chairman and chief executive officer of Cementir Holding – the group's net financial debt at the end of 2018 will be close to 0,5 times the gross operating margin. This will give us the opportunity to seize other opportunities that may arise in the future, as has happened in the last twelve months". The intention therefore seems to be to proceed with new acquisitions.
Cementir Italia's business includes 5 full cycle cement plants and 2 cement grinding centres, as well as the network of terminals and concrete plants in Italy. The consideration of the transaction (enterprise value), adds the note, is 315 million on a "cash and debt-free" basis. The transaction, it should be added, is subject to authorization by the Antitrust and the closing is expected for the beginning of 2018. In 2016, the pro-forma revenues from sales of the Cementir Italia group amounted to 136 million (considering Cementir Sacci for 12 months actually acquired at the end of July 2016)
The idea of selling all the Italian assets, observes Radiocor, was perhaps already maturing in April, when during the Cementir budget meeting, Caltagirone jr complained about the slowness of the concentration process in Italy, a market "with a production capacity of 40 million tons and a stable demand of 19 million,” he said. 'The watchword in Italy for cement – added Caltagirone speaking to reporters on that occasion – is to diversify abroad today and time will not be short'. The Italian activities account for about 12% of the group's revenues.
