Disposal of cement, concrete and aggregates assets in Chile. €750 M of divestments achieved out of a total 2009 target of €1 bn.

Euronext Paris : LG
07.28.2009
 

Lafarge announces the sale of its Chilean cement, aggregates and concrete assets to the Peruvian  Brescia Group for US$555 million enterprise value, equal to 7.4 times the 2008 EBITDA. Lafarge owns 84% of these assets. The transaction is part of Lafarge's global divestment plan.

Lafarge has been present in the Chilean market with cement, concrete and aggregates activities since 2001 through two entities: Lafarge Chile SA and Immobiliaria San Patricio. The assets sold include the La Calera cement plant, which is located around 100km from the capital Santiago and has capacity of 1.5 million tonnes, along with the Puerto Montt grinding station in southern Chile, which has a total capacity of 300,000 tonnes. A second grinding station is currently being built in Ventanas. Lafarge is also selling 54 ready-mix concrete units, 5 aggregates quarries, an import terminal and a mortar production unit.

Lafarge Chile SA and Immobiliaria San Patricio are listed on the Santiago stock exchange.

The sale of Lafarge's stake in both these entities will be effective on August 31st at the latest, following the launch of the public tender to buy out the minority interests by the buyer for Lafarge Chile SA.

Lafarge's minority participation in its Chilean gypsum activities is not included in this sale. 

Lafarge on track with its divestment plan

This transaction is part of Lafarge's announced 2009 €1 billion divestment program.

In addition to the divestment announced on the 4th of May, Lafarge has sold assets in its three business lines, including asphalt activities in Canada and the USA, aggregates and concrete operations in Europe and North America and its last Turkish cement plant.

The Group has already achieved 3/4 of its 2009 divestment target: €750 million out of the €1 billion target announced in February 2009.

 
Notes to editors

Brescia Group is one of largest business conglomerates from Peru. The group owns worldwide companies like TASA the first fishmeal producer with 6% of world demand. Its mining company Minsur is the third largest world producer of tin and has operations in Peru and Brazil. Its Peruvian hotel corporation, Libertador, is the first premium hotels chain in the country and has operational agreements with the international Starwood. On this year they have more than US$100 million on new luxury hotels to be open during 2009 and 2010.
Brescia Group owns real estate companies which build and manage shopping centers, office buildings, retail stores, and sell urban and residential properties. The group owns over 2 million ft2 of rentable area and approximately 1.5 million ft2 in land area, mainly in the city of Lima. With BBVA from Spain (50%), it owns Banco BBVA Continental, which is the second largest bank in Perú and the largest Pension Funds Administrator. The group is also the owner of Rimac seguros, the first insurance company in the country and many other important enterprises on agriculture, fruit exports, welding, explosives, paint and chemicals, health, construction and other services.

Lafarge is the world leader in building materials, with top-ranking positions in all of its businesses: Cement, Aggregates & Concrete and Gypsum. With more than 84,000 employees in 79 countries, Lafarge posted sales of Euros 19 billion in 2008.
In 2009 and for the fifth year in a row, Lafarge was listed in the ‘Global 100 Most Sustainable Corporations in the World'. With the world's leading building materials research facility, Lafarge places innovation at the heart of its priorities, working for sustainable construction and architectural creativity.

 
 

The press release (pdf, 76.61 KB)