Cemex selling Canary Islands assets

Cemex is selling its assets in the Canary Islands to Spanish investment holding company Cimpor Inversiones, a subsidiary of Cimpor Cimentos de Portugal, according to a statement on its website.

It is selling its operations in the Canary Islands for approximately €162 million in addition to a separate payment for the working capital, the statement added.

Proceeds from the sale will be used to reduce debt, said the statement.

The transaction is subject to the approval of Spanish regulatory authorities.

The scope of the transaction includes Cemex's cement and ready-mix assets in Tenerife and 50% of the shares in two joint-ventures, Cementos Especiales de las Islas and Inprocoi.

These operations together generated approximately €189 million in revenues during 2007.

Cemex manages directly, and through its joint-ventures, two grinding mills and 19 other plants in the Canary Islands including ready-mix, mortar and precast facilities.