He San Pablo Bankruptcy and Reorganization Court A fundamental decision was made so that the historic Loma Negra cement factory returned to Argentine hands. The judiciary of this country approved the transfer of the majority shareholding (52%) of Loma Negra – now in the hands of the Brazilian group Mover (formerly Camargo Correa) – to the company Latcem, headed by the Argentine businessman Marcelo Mindlin, president of Pampa Energía.
In this case Mindlin will acquire the cement company together with strategic partners such as global investment funds Redwood Capital Management and Moneda–Patria InvestmentS. This move not only represents a capital change, but is also intended as a boost to stability necessary for the operational future of the group.
The court order officially approves the restructuring plan presented by InterCement, the company that now controls Loma Negra. From a management perspective, the financial support mechanism accompanying the transfer of shares is of utmost importance.
The suggestion is adopted immediately a new line of financing provided by future shareholders. This capital will be used in particular to strengthen working capital and ensure that the transition is smooth and without interruptions in the value and production chain.
The transaction in which Marcelo Mindlin is involved to take control of Loma Negra is a process of debt restructuring of the controlling company InterCement (the Brazilian group Mover) and not a direct purchase of shares at a single and public price. For that, There is no exact value that this transaction could contain yet.
Therefore, an exact figure “how much Mindlin will pay for Loma Negra in a single transfer” is not known, but the operation is based on the capitalization of InterCement’s debt.
From Latcem they claimed that the court decision was an “important milestone” in the realization of the operation, which aims primarily at lasting financial stabilization. The investment group emphasized that this rescue structure guarantees both InterCement and its subsidiary throughout the transition period and until the actual takeover by the new shareholders Loma Negra will continue to operate as usual.
The company, which will now fall under Latcem’s sphere of influence, is ready to do so Beginning of a new phase of operational strengthening.
The restructuring plan not only addresses the ownership of Loma Negra, but also gives InterCement a significantly stronger capital structure, eliminating relevant debt maturities in the next five years. This restructuring is crucial for the parent company to resume its strategic role in the industry: InterCement maintains a 14% market share in Brazil and, of course, control of the Argentine cement company.
The new controller emphasized that the renegotiation, which was supported by more than 99.9% of creditors, gives the group greater long-term investment capacity and a significant increase in operational sustainability, linked to a strategic vision aimed at the development and growth of the company in both markets.
The change of control comes at a complex time for the Argentine cement company’s operations. Loma Negra, market leader with a share of almost 45 percent, reported net sales of $154 million in the third quarter of the year in its most recent financial statement. In a year-on-year comparison, this figure represented a decline of 12.1 percent, which is primarily due to the 13.2 percent decline in cement sales. Revenues for the period also reflected this trend, falling 35.1%.
Loma Negra’s net debt is approximately $206 million. Therefore, the inflow of fresh capital is a crucial factor in alleviating financial and operational pressures.
This capital transfer marks the return of Loma Negra, founded in 1926 by Alfredo Fortabat and expanded by Amalita Fortabat, to Argentine control after remaining in the hands of Brazilian capital since 2005.
To finally close the transaction, the Mindlin-led consortium still needs to complete key administrative and legal procedures, including pending regulatory approvals in Brazil and the completion of other legal proceedings abroad.
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