Construction group CRH has transferred its 49 per cent shareholding in Secil, the Portuguese cement producer, to Semapa (SGPS, S.A.), its former joint venture partner, for a sum of €564.5 million.
Construction group CRH has transferred its 49 per cent shareholding in Secil, the Portuguese cement producer, to Semapa (SGPS, S.A.), its former joint venture partner, for a sum of €564.5 million.
The move follows a call option exercised by Semapa and confirmed by an award issued by an Arbitral Tribunal in Paris, functioning under the Rules of Arbitration of the International Chamber of Commerce (ICC), at a valuation of €574 million.
CRH originally paid €329 million for the stake and took on a €100 million share of its net debt when the deal was completed in 2004, bringing the total cost to €429 million. However both parties ended up in dispute over the future of their joint cement manufacturing venture in October 2009.
Semapa has indicated that it intends to continue its proceedings in the Cour d'Appel (court of appeal) in Paris in relation to the award made by the Arbitral Tribunal. CRH will be represented at the hearing.
