Votorantim Cimentos Said to Prepare IPO of $3 Billion

Votorantim Cimentos SA, the biggest cement producer in Brazil, is preparing an initial public equity offering of at least $3 billion, according to three people with direct knowledge of the matter.

Votorantim Cimentos hired Banco Itau BBA SA and JPMorgan Chase & Co. (JPM) to manage the deal and will include additional banks, said the people, who asked not to be identified because the plan hasn’t been made public. The IPO will take place sometime next year, they said.

“Such a move is not Votorantim’s actual plan,” the company said in an e-mailed statement.

Votorantim Cimentos, which expanded into six countries this year, may make acquisitions in the U.S., South America, Africa and some European countries, former Chief Executive Officer Walter Schalka said in August. A $3 billion IPO by the Sao Paulo-based company would be the biggest for Brazil since Banco Santander Brasil SA’s $7.5 billion offering in 2009.

The cement unit of Brazil’s Grupo Votorantim, controlled by the Ermirio de Moraes family, completed a swap of its 21.2 percent stake in Cimpor Cimentos de Portugal SGPS SA (CPR) in June. The company gained access to China, India, Turkey, Morocco, Tunisia and Spain, adding 778 million euros ($1 billion) in annual sales, according to a June 25 statement.

Officials Itau BBA and JPMorgan declined to comment on the IPO plan and asked not to be named in keeping with company policy.

To contact the reporter on this story: Cristiane Lucchesi in Sao Paulo at clucchesi5@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net

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