The Brazilian judiciary has taken an important step to clear the restructuring of InterCement, and with it paved the way for businessman Marcelo Mindlin – owner of Pampa Energía and former partner of Eduardo Elsztain at IRSA – to complete the purchase of Loma Negra, Argentina’s largest cement company.
The São Paulo State Bankruptcy and Reorganization Court approved the restructuring plan of InterCement – the Brazilian company that holds the majority stake in Loma Negra – with the support of more than 99.9% of creditors, a level of approval that accelerated the process.
Once the conditions provided for in the plan are met, Latcem – the company managed by Mindlin together with Redwood Capital Management and funds managed by Moneda-Patria Investments – becomes the main shareholder of InterCement. Through this operation, the group will indirectly take control of 52% of Loma Negra.
The agreement includes a new line of financing provided by future shareholders to strengthen working capital and ensure an orderly transition as the transfer of control progresses. According to sources close to the process, the court approval will allow the company to go through a period of financial stabilization. without relevant due dates in the next five years.
However, the completion of the transaction still requires regulatory approvals in Brazil, compliance with the election deadlines and procedures provided for in the plan, and the completion of legal proceedings abroad. Following the decision of the court in São Paulo, all of these steps are now entering the final phase.
Loma Negra is the leading company in the production and marketing of cement in Argentina, with a market share of almost 45%. The company is nearing its 100th anniversary – it was founded in 1926 by Alfredo Fortabat – and is one of Argentina’s most publicly recognized companies. Under the leadership of Amalita Fortabat – the founder’s widow – the company consolidated its growth and added production facilities in San Juan, Neuquén and the province of Buenos Aires.
Amalita took over Loma Negra in 1976 Under her leadership, the company tripled its assets within a few years, becoming the richest and most powerful woman in Argentina.
In 2005, the company passed into the hands of Camargo Correa, who gained control of the Argentine company for an amount of almost $1 billion.
Its stock market debut took place in November 2018, when the cement company raised $953 million through the sale of 251 million shares (representing about 49% of the share package). The deal was the second-largest IPO by an Argentine company since YPF raised $2.7 billion in 1993.
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