Bolivian cement producer Fancesa can expand its business without merging with larger competitor Soboce, according to its general manager Gonzalo Arce, Correo del Sur newspaper reported. Arce believes the company can advance on a proposal put forward by two of its three shareholders, the local government of Sucre and University of San Francisco Xavier, to strengthen the company without the help of Soboce, its other shareholder, which wants to affect a merger.
The Sucre government and university are expected to announce an agreement on a proposal to grow the company. Arce has met with university rector Wálter Arízaga to clarify the level of debt the company can take on and its ability to obtain the financing required. A bond issue, reinvestment of profits and credit from equipment suppliers are the likely funding sources, according to the newspaper. Arce indicated that work on the bond issue would start as soon as the level of financing required has been defined.
