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| Cementos Portland Valderrivas to increase capital by 202 mln euro Cementos Portland Valderrivas, S.A., the largest cement producer in Spain, is to increase capital by approximately 202 million euro in a three-for-eight issue priced at 20 per share with pre-emptive subscription rights. The company's majority shareholder, FCC, supports the issue and will exercise its pre-emptive subscription right on its entire 68.96% stake (direct and indirect). The capital increase is part of the company's efforts to manage the current situation, and the funds will be used to strengthen its capital structure and financial ratios. The company will also divest the businesses in Argentina and Uruguay for 135 million euro; this move was originally announced on 11 November 2009 and is pending completion. Moreover, initiatives to reduce recurring costs, implemented at the end of 2008 through Plan100, have saved approximately 64 million euro, enabling the company to maintain its EBITDA margin over 28%. Cash flow has also been enhanced by reducing working capital and adjusting capital expenditure. The Group has adopted two new priority lines of action, alternative fuels and power generation, in accordance with new requirements of environmental regulation. A number of R&D and innovation projects are under way to produce new cements in line with market demands and the principle of sustainability. write your comments about the article :: © 2009 Construction News :: home page |