Bloomberg News

Votorantim, Camargo Said in Talks to Buy Rest of Cimpor

October 20, 2011

(Updates with closing share price in fourth paragraph, Camargo Correa comment in last.)

Oct. 20 (Bloomberg) -- Brazilian holding companies Votorantim Participacoes SA and Camargo Correa SA are in talks to buy a remaining stake in cement maker Cimpor-Cimentos de Portugal SGPS SA, said two people familiar with the negotiations.

Camargo plans to take over Cimpor’s operations in Brazil, while Votorantim would consolidate assets of the Lisbon-based company outside of Brazil, said one of the people, who declined to be identified because the transaction is private. The Sao Paulo-based companies already own about 54 percent of Cimpor, according to data compiled by Bloomberg.

The value of the remaining stake is about 1.5 billion euros ($2.1 billion) based on Cimpor’s Oct. 19 closing share price. Votorantim and Camargo acquired control of the Portuguese cement maker in February 2010 after beating an offer from Cia. Siderurgica Nacional SA.

Cimpor shares climbed 4.4 percent in Lisbon trading to close at 5.21 euros, their biggest one-day gain since Dec. 2. Cimpor has gained 2.8 percent this year, compared with a 21 percent decline for Portugal’s benchmark stock PSI-20 index.

“Investors who hold Cimpor shares are expecting a higher price if there is a takeover and those who don’t own Cimpor shares will probably like to buy some,” said Juan Dieste, a trader at Orey iTrade in Lisbon.

Largest Investors

Cimpor’s biggest shareholders after Camargo and Votorantim are Manuel Fino SGPS SA, with a 10.7 percent stake, Banco Comercial Portugues SA’s employee pension fund, with 10 percent, and Caixa Geral de Depositos, with 9.6 percent, according to data compiled by Bloomberg.

In February, Brazil’s Finance Ministry recommended that the antitrust agency approve Votorantim and Camargo’s stakes in Cimpor with some restrictions, including the sale of some assets.

The talks with Cimpor shareholders could break down and there is no guarantee a deal will be reached.

Mafalda Correia, a spokeswoman for Cimpor, declined to comment. An official for Votorantim declined to comment.

Camargo Correa said in a statement distributed today by Portuguese public relations firm Imago that there’s no change on its position in Cimpor.

--With assistance from Joao Lima and Henrique Almeida in Lisbon and Serena Saitto in New York. Editors: Elizabeth Wollman, Donna Alvarado, David Risser

To contact the reporters on this story: Cristiane Lucchesi in Sao Paulo at clucchesi5@bloomberg.net; Francisco Marcelino in Sao Paulo at mdeoliveira@bloomberg.net

To contact the editor responsible for this story: Jennifer Sondag at jsondag@bloomberg.net


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