Turkey’s Army Pension Fund, OYAK, has reached a preliminary agreement to sell its stakes in two cement firms to Taiwan Cement Corp. for a total of about 673 million euros.
The fund said in a statement late on Monday it would sell a 20% stake in Oyak Denizli Cement to Taiwan Cement, valuing the company at 1.3 billion euros ($1.42 billion). Taiwan Cement estimates it will pay 193.4 million euros for the stake, increasing its ownership to 60%, a filing from the Taiwanese company shows.
The deal confirms a Bloomberg report from Monday that Taiwan Cement was in talks with OYAK to increase its stake in Oyak Denizli, their joint venture. It had purchased a 40% stake in Oyak Cement Group, a subsidiary of Oyak Denizli, in 2018 for about 563 million euros.
OYAK said the stake sale was motivated by its ambitions for “sustainable growth” and to cut carbon emissions.
OYAK will also sell a 60% stake in Cimpor Portugal Holdings for 480 million euros, making the Portuguese firm a wholly—owned unit of Taiwan Cement. The deal puts the enterprise value of Cimpor Portugal Holdings at 800 million euros.
Shares in Oyak Cement climbed as much as 4.4% in Istanbul, and were 2.2% higher as of 11:45 a.m. Earlier, Taiwan Cement shares rose as much as 4.6% in Taipei.
--With assistance from Filipe Pacheco, Cindy Wang and Ugur Yilmaz.
