Ciments Francais seeks to keep Sibstem advance payment

Ciments Francais said it wants to keep a EUR50m advanced payment by SibCement for Turkish cement assets which the latter did not acquire, according to local press reports.

Ciments Francaise filed a suite with the Supreme Arbitration Court on 20 December to recognise a ruling by the Istanbul Arbitration Court made on 7 December 2010. Under the ruling, the French company did not have to repay the advance payment to SibCement.

In March 2008, Sibtsement announced that it would acquire Turkey’s Set Group from Ciments Francais, having paid EUR377.3m and about 5% of its shares (estimated at EUR200m). The first installment stood at EUR50m. However, the effects of the global economic crisis resulted in the two groups failing to close the deal.

In summer 2010 the Arbitration court of Kemerovo region confirmed that Ciments Francais had to pay off advanced payment to SibCement, as the agreement was null and void. In early 2011 the Kemerovo court refused to confirm the Istanbul court ruling.

Source: SKRIN Newswire