OREANDA-NEWS. December 17, 2014. LSR Group is selling its cement plant in Slantsy, the Leningrad region to Eurocement Group. The parties have signed preliminary sales agreement as Eurocement Group obtained approval from Federal Antimonopoly Service of the Russian Federation (FAS).

The control over the plant operations is expected to be transferred in December 2014

This deal is part of implementation of LSR Group strategy to focus on projects with highest returns on invested capital and fast growing real estate development business thus maximizing value for shareholders.

LSR Group will use most of the proceeds to reduce its debt and make it 100% ruble based by the end of the year. Net Debt/EBITDA will be reduced to less than 1.0.

We also expect positive effect of the deal on EBITDA and Net profit.