Battle for CIMPOR continues: Votorantim hikes stake to 21.21 per cent

19 Feb 2010

The triangular battle for the control of Portuguese cement major Cimentos de Portugal SGPS SA (CIMPOR) intensified further when Brazil's largest cement maker Votorantim Cimentos SA (Votorantim) bought additional 3.93 per cent share in the company, raising its stake to 21.21-per cent.

Votorantim, a member of the Sao-Paulo based Votorantim Group which is one of the largest business conglomerates in Latin America, acquired 26.4 million shares of CIMPOR from holding company Cinveste SGPS SA for €154.4 million, or €5.85 a share, a statement issued by the company said. 

Votorantim entered the race a fortnight ago by acquiring French construction giant Lafarge's 17.28-per cent stake in CIMPOR. (See: Battle for CIMPOR: Votorantim buys Lafarge's 17.28-per cent stake)

The deal raises the combined stake of Votorantim along with its partner Portuguese bank Caixa Geral de Depositos (9.63 per cent) to 30.84-per cent, closely matching rival Brazilian business conglomerate Camargo Correa SA's (Camargo) 31.12-per cent.

Last week, Camargo agreed to buy a 22.17-per cent stake in the company from Portuguese construction major Teixeira Duarte (See: Battle for CIMPOR: Camargo acquires Teixeira Duarte's 22-per cent stake for 1.33 billion)

It subsequently added 6.46 per cent from Spanish steel maker Bipadosa and another 2.49-per cent from other investors taking the total stake to 31.12 per cent.