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Join on Telegram Rabat – HeidelbergCement has announced the sale of around 500,000 shares, representing 3.6% of its shares in its subsidiary Ciments du Maroc for an estimated MAD 777.5 million (€73 million).
The company sold the shares to a group of Moroccan institutional investors through a block trade. The investors include banks, credit unions, insurance companies, pensions, investment advisors, endowments, and mutual funds among others.
Following the transaction, HeidelbergCement will retain a controlling stake of 51% in its material building company and continue to fully support the subsidiary as part of its umbrella company.
“HeidelbergCement is fully committed to remaining the long-term majority shareholder of Ciments du Maroc, a key strategic asset within the Group’s portfolio,” said Dr. Bernd Scheifele, the chairman of the cement giant’s board.
“The further reduction in shareholding is part of our action plan to optimize our portfolio and generate cash in order to speed up deleveraging. We continue to be well on track to reach our target of €1.5 billion of disposal proceeds by the end of 2020,” Scheifele added.
Ciment du Maroc is Morocco’s second-biggest cement producer and the leading operator in ready-mix concrete and aggregates. LafargeHolcim Maroc is the country’s largest cement producer.
In the third quarter of 2019, the Moroccan leader in the production and marketing of cement and building materials, LafargeHolcim, achieved MAD 1.9 billion (€178.08 million) in revenue, a drop of 1% compared to the same period in 2018.
Meanwhile, in the first quarter of 2019, Ciment du Maroc attained a turnover of MAD 2.04 billion (€191.2 million) compared to MAD 1.95 billion (€182.76 million) in the same period the year before
The upward trend in revenue is linked to the growth in cement sales by volume of 0.9% and an increase in sales of clinker by 55.3%. The growth is owed in particular to an increase in exports, according to Ciment du Maroc’s financial reporting.
