Portugal’s Cimpor buys Chinese cement company

1 June 2007

Lisbon, Portugal, 1 June – Portuguese cement company Cimpor said Thursday in Lisbon it had bought 60 percent of the Shandong Liuyuan New Type Cement Development Company (New Liuyuan) for around 2 million euros in cash.

The acquisition was carried out through Cimpor subsidiary, Cimpor Chengtonh, and will be paid in two tranches of equal value, the first fo which immediately and the second within three months, according to a press statement.

cimpor Chentong will also grant an internal loan to New Linuyuan of approximately 10 million euros, to pay off debts to some of the Chinese company’s shareholders.

After the acquisition of New Liuyuan, the shareholders of Cimpor Chentong – Cimpor Inversiones (80 percent) and China Chentong Cement Group (20 percent), will carry out a capital increase to the value of 23 million euros.

Cimpor Inversiones also announced it would transfer its stake in Cimpor Chentong to a new company to be set up in Macau, between Cimpor Inversiones (50 percent) and C+PA – Cimento e Produtos Associados (25 percent) and Chinese company Estrela Nova (25 percent), headquartered in Macau.

Cimpor is present in 11 countries, with cement production capacity of 28 million tons per year. (macauhub)