Turkey's Army Pension Fund, OYAK, has reached a preliminary agreement to sell its stakes in two cement companies to Taiwan Cement Corp for a total of about EUR673m.
OYAK is selling a 20 per cent stake in Oyak Denizli Cement of Turkey to Taiwan Cement, valuing the company at EUR1.3bn (US$1.42bn). Taiwan Cement estimates it will pay EUR193.4m for the stake, increasing its ownership to 60 per cent, a filing from the Taiwanese company confirmed. Taiwan Cement had purchased a 40 per cent stake in Oyak Cement Group, a subsidiary of Oyak Denizli, in 2018 for about EUR563m. OYAK said the stake sale was motivated by its ambitions for “sustainable growth” and to cut carbon emissions.
OYAK will also sell a 60 per cent stake in Cimpor Portugal Holdings for EUR480m, making the Portuguese firm a wholly-owned unit of Taiwan Cement. The deal puts the enterprise value of Cimpor Portugal Holdings at EUR800m.
