Third generation of founders of former Camargo Corrêa wants to keep part of CCR shares given as collateral; negotiation depends on Benjamin Steinbruch

07/30/2024

---

The sale of InterCement is considered crucial for the group to focus on less problematic businesses — Foto: Divulgação

The controlling shareholders of Mover, the company formerly known as Camargo Corrêa, are seeking a quick solution for the sale of InterCement, the last major business that remained with the third generation of the group founded by Sebastião Camargo.

Last week, the company announced that it had re-opened talks within the exclusive dealing agreement with CSN—which had expired on July 12—for the sale of the family’s cement division. The new deadline is Wednesday (31) but if negotiations gain ground the agreement will be valid until August 12th. Until then, the group is rushing to sell all its operations in Brazil and Argentina to businessman Benjamin Steinbruch, an old rival.

In a note to the market last week, CSN confirmed its interest in InterCement Brasil’s assets but pointed out that no binding documents have been signed to date that create an obligation or commitment to carry out the deal.

A person close to Mover’s controlling shareholder told Valor that the divestment is crucial for the family’s heirs—the group’s third generation—to focus on less problematic businesses.

The current generation is made up of grandchildren and husbands of the founder’s three heirs—Regina, Renata, and Rosana, the daughters of Sebastião Camargo—who took over the business in 2015. Important companies in the conglomerate—from Alpargatas to a stake in electric utility CPFL Energia—were sold to raise cash, and business areas were redesigned after the anti-corruption task force Car Wash. The breakdown of the conglomerate has not yet been completed.

InterCement was regarded as a promising asset despite its high debt. Mover, Brazil’s second-largest cement producer, intended to carry out an initial public offering (IPO), but the plans were halted in 2021 due to an adverse capital market scenario.

Since then, the financial situation has worsened and pressure from creditors increased. With debt approaching R$12 billion, the company went to court this month to avoid the forced collection of R$3 billion that was due in July.

According to the source, the best scenario for the family would be selling the entire operation in Brazil and Argentina to CSN. A sale of separate stakes would take longer and would be not as profitable, although there are local interested parties for Loma Negra, listed on the Argentina stock exchange, according to this source.

However, it depends on reaching an agreement with the creditor banks—a process that is underway. At the same time, it remains unknown how Mr. Steinbruch will manage the refinancing of the heavy debts. The deadlines are also tight. Furthermore, the family offered part of its shares on highway concessionaire CCR as collateral to Bradesco but now is refusing to give them up.

Mover has 14.86% of the company, currently seen as the best asset in the group. CCR’s market capitalization is around R$25 billion.

Another person familiar with the conversations said negotiations involving the shares are “complex.”

According to this source, there is a favorable agreement being discussed and no definition so far.

If the heirs manage to resolve the issue, they will remain as CCR’s main shareholders and continue leading the company’s key real estate portfolio. Construction company HM, with a focus on the affordable housing segment, is part of the group, in addition to other key real-estate enterprising.

The heirs gave control of their companies and preferred to own a holding company that manages assets, which have been decreasing year after year.

This year, the holding company sold finance outsourcing firm Vexia to Francisco Ricardo Blagevitch, the founder of Asyst—later sold to the Algar Tech group—and Sami Arap, a lawyer specializing in M&A and compliance.

Mover declined to comment on the matter.

*Por Mônica Scaramuzzo — São Paulo

Source: Valor International

https://valorinternational.globo.com/