OJSC LSR Group (LSE: LSRG; MOEX: LSRG) has completed sale of its cement plant to Eurocement Group:
LSR Group has completed sale of its cement plant located in Slantsy, the Leningrad region, to Eurocement Group. The buyer acquired full operating control over the facility. The positive effect of the disposal is to be reflected in the companyís IFRS accounts for 2014.
The deal is a part of LSR Groupís strategy aimed to focus on projects with the highest returns on invested capital and the fast growing real estate development business thus maximising value for our shareholders. As a result we have decreased our debt significantly and made it 100% ruble based. As of the end of 2014 financial year we expect our Net Debt/EBITDA to decrease to less than 1.0.
Notes to Editors:
OJSC LSR Groupis a real estate development and building materials company founded in 1993 and operating in a number of complementary market segments. Its core business areas are production of building materials, real estate development and panel construction. LSR Group's main operations are located in St. Petersburg, Moscow and Yekaterinburg. As of 31 December 2013 (according to DTZ), the net sellable area of the projects in LSR Group's real estate portfolio is equal to 7.8m m2 with the market value of RUB 117bn. In 2013, the sales revenue of LSR Group amounted to RUB 65,316m (IFRS). LSR Group is a public company, with its GDRs traded on the London Stock Exchange and its ordinary shares traded on Moscow Exchange.
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LSR Group Press Service
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