FCC will increase its participation in Spain-based cement producer Cementos Portland from 69.8 to 78 per cent. The transaction will be carried out by a capital increase of EUR111m through the capitalisation of a EUR100m subordinated loan granted by FCC.
The capital increase will result from the issuance of 13,878,094 new ordinary Cementos Portland shares, representing EUR1.50 par value each with a premium of EUR6.50/share, for a total of EUR8. The capital increase is expected to take place before 15 May.
The step will enable Cementos Portland to cut its debt by more than eight per cent, strengthen its balance sheet and increase equity, while FCC will strengthen its position in the company.
