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| Italcementi becomes shareholder of Russian cement producer Italy's construction materials giant Italcementi through its sub-holding Ciments Français has agreed to sell its assets in Turkey for a total of 600 millions euro to Sibirskiy Cement, the second Russian cement producer and leader in the region east of the Urals. The transaction will be paid part in cash (400 millions euro) and part (200 millions euro) in Sibirskiy Cement shares. The amount paid for the whole Set Group corresponds to 171€ per ton of cement sold in 2007. The price of Sibirskiy shares has been determined as the average of the 3 months prior to signing of the agreement. After this transaction Italcementi will own 5.4 % of Sibirskiy. Italcementi will also have a put option on the stake acquired to be exercisable versus Sibirskiy Cement between 18 and 24 months after closing for a value of 220 millions euro. Italcementi has been operating in Turkey since 1989 with a system composed of four cement plants, one grinding center and 18 ready-mixed concrete facilities which generated a total turnover of 260 millions euro in 2007. The sale and purchase agreement is subject to a number of conditions among which the approval of the Antitrust and of the Privatization Authorities in Turkey. EFG Istanbul Securities advised Italcementi Group on this transaction. write your comments about the article :: © 2008 Construction News :: home page |