Jul 30 2009
In the context of its announced divestment programme, HeidelbergCement is selling its activities in Israel. The company operates ready-mixed concrete, aggregates and asphalt production sites there.
The share purchase and sale agreement was signed between HeidelbergCement and Mashav Initiating and Development Ltd, which is a part of CLAL Industries and Investments Ltd, belonging to IDB Group of Israel. IDB Group is one of the biggest public holding companies of Israel.
The deal represents an equity value of around EUR 120 million. The exact amount will be calculated on the base of net financial position at the closing date.
"The proceeds from the disposal will contribute to HeidelbergCement's deleveraging and debt reduction," explains Dr. Bernd Scheifele, Chairman of the Managing Board. "For the further reduction of its debt HeidelbergCement will continue to focus on its divestment programme of non-stategic business units."
Since the closing of the deal is subject to the approval of the cartel authority, it is expected to take place before the end of 2009.