CEMEX sells assets in Canary Islands
- 16 November 2008
- Company & Industry News
Monterrey, Mexico. November 7, 2008 - CEMEX, S.A.B. de C.V. (NYSE: CX), announced today that it has reached an agreement to sell its Canary Islands operations to Cimpor Inversiones, S.A., a Spanish investment holding company that is a subsidiary of Cimpor Cimentos de Portugal SGPS SA, for approximately €162 million euros (US$211 million dollars) in addition to a separate payment for the working capital. Closing of the transaction is subject to the approval of Spanish regulatory authorities.
The scope of the transaction includes CEMEX's cement and ready-mix assets in Tenerife and 50% of the shares in two joint-ventures, Cementos Especiales de las Islas, S.A. (CEISA) and Inprocoi, S.L. These operations together generated approximately €189 million euros (US$260 million dollars) in revenues during 2007.
CEMEX manages directly and through its joint-ventures in the Canary Islands 2 grinding mills and 19 other plants including ready-mix, mortar and precast facilities.
Proceeds from the sale will be used to reduce debt.
J.P. Morgan and RBS acted as financial advisors to CEMEX in this transaction.