HeidelbergCement has sold a 50% stake in its Georgian business to Cement Invest for €115 million. Cement Invest is an investment company jointly managed and owned by the Georgian Co-Investment Fund (GCF) and Hunnewell Partners.
“The partnership will enable out new Georgian joint venture to benefit from GCF’s and Hunnewell’s project experience in Georgia,” said Dr Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement.
HeidelbergCement’s Georgian business includes the Kaspi cement plant, which is currently undergoing modernisation with the installation of a new dry kiln. The project began in 2016 and is expected to be competed in 2018.
In addition to the Kaspi plant, the new joint venture will operate another two integrated cement plants, a cement grinding terminal, and a cement terminal on the Black Sea coast. Annual cement production capacity is more than 2 million tpy.
The company also owns 13 ready-mixed concrete plants and two aggregate operations.
“Ths disposal is part of our portfolio review and optimization with the goal to generate additional cash flow in order to support our disciplined growth and increase shareholder returns,” concluded Dr Scheifele. The €115 million generate from the sale will be used to reduce HeidelbergCement’s debt.
Read the article online at: https://www.worldcement.com/europe-cis/13112017/heidelbergcement-sells-stake-in-georgian-business/