HeidelbergCement is raising EUR115m (US$134m) by selling 50 per cent of its Georgian subsidiary to a Georgian investment fund called Cement Invest, which belongs to Georgian Co-Investment Fund and Hunnewell Partners, a special situations investment fund.
HeidelbergCement has been active in Georgia since 2006 and a new kiln line is currently under construction that is expected be completed by the end of 2018. Currently, there are three integrated cement works, one grinding centre, 13 ready-mixed concrete plants and two sand and gravel quarries.
“The partnership will enable our new Georgian joint venture to benefit from GCF’s and Hunnewell’s project experience in Georgia,” explains Dr Bernd Scheifele, chairman of the Managing Board of HeidelbergCement. “In addition, the joint venture’s competitiveness will be improved with the modernisation of the Kaspi cement plant, where the construction of a modern dry kiln line already started in 2016 and is expected to be finalised by the end of 2018. The disposal is part of our portfolio review and optimization with the goal to generate additional cash flow in order to support our disciplined growth and increase shareholder returns.”
