Russian cement tycoon's firm consolidates over 10% of Holcim
ZURICH. Sept 20 (Interfax) - Eurocement Holding AG, which is controlled by Russian tycoon Filaret Galchev, has consolidated 10.11% of shares in the world's second largest cement producer, Switzerland's Holcim Ltd.
Holcim reported that Eurocement Holding crossed the 10% threshold on September 12.
Eurocement Holding announced the purchase of 6.52% of shares in Holcim on the open market in September 2008. As of the end of 2010, Galchev's stake was unchanged.
Holcim's market capitalization has plummeted more than 60% in the past few years. After peaking at 126 Swiss francs in 2007, the company's share price dropped to 111 francs in 2008, when Eurocement bought up shares, and to 85 francs in 2010. The shares have been at a 52-week high of 76.9 francs, but on September 16 they closed at 47.35 francs. Based on the price at 7:30 p.m. Moscow time on Monday, the whole company is worth 14.87 billion francs ($16.8 billion), and Galchev's stake is worth 1.5 billion francs.
Holcim's largest shareholder at the end of 2010, with a stake of 18.2%, was Thomas Schmidheiny, who has sat on the company's board since 1978, including as chairman from 1984 to 2003. Capital Group holds 4.9% of shares.
In announcing the acquisition of 6.5% of Holcim in 2008, Eurocement Holding said this was a friendly move and a long-term investment. Eurocement said it was interested in "Holcim's engineering, technical and technological potential for implementing a previously announced investment program."
Eurocement Holding head Thierry Sauvaire said in a press release that "we continue to support the company's strategy."
Holcim sold about 137 million tonnes of cement in 2010, 160 million tonnes of aggregates and 46 million cubic meters of concrete. The company's net profit fell 17% to 1.62 billion francs, though revenue rose 2.5% to 21.6 billion francs.
Holcim has had a presence in Russia since 1993. The company controls Alfa Cement, which includes Volskcement and Shchurovsky Cement Plant in Kolomna. In July, President Dmitry Medvedev attended the opening of a new line at the Shchurovsky plant with capacity of 2.1 million tonnes of cement per year. Holcim invested 500 million euros in the line, which is aimed primarily at the Moscow market.
Eurocement Holding controls Eurocement Group, a vertically integrated construction materials holding company that has 16 cement plants in Russia, Ukraine and Uzbekistan with combined capacity of about 37.5 million tonnes per year.
Galchev is also a major shareholder of potash producer company Uralkali .