Disposal part of portfolio review and optimization to generate additional cash flow and reduce net debt
HeidelbergCement have sold 50% of the voting rights in their Georgian business to Cement Invest, an investment company jointly managed and owned by the Georgian Co-Investment Fund (GCF) and Hunnewell Partners.
HeidelbergCement and Cement Invest will jointly control the resulting joint venture, and the transaction will contribute around €115 million to the reduction of HeidelbergCement’s net debt.
‘The partnership will enable our new Georgian joint venture to benefit from GCF’s and Hunnewell’s project experience in Georgia,’ explained Dr Bernd Scheifele, chairman of the managing board of HeidelbergCement.
‘In addition, the joint venture’s competitiveness will be improved with the modernization of the Kaspi cement plant, where the construction of a modern dry kiln line started in 2016 and is expected to be finalized by the end of 2018.’
He continued: ‘The disposal is part of our portfolio review and optimization, with the goal of generating additional cash flow in order to support our disciplined growth and increase shareholder returns.’
HeidelbergCement commenced business in Georgia in 2006. The new joint venture operates three integrated cement plants, a cement grinding facility and a cement terminal on the Black Sea coast.
Annual cement production capacity exceeds 2 million tonnes and the business is supported by a network of 13 ready-mixed concrete plants.