LIMA, Peru--(BUSINESS WIRE)--Graña y Montero S.A.A. (NYSE:GRAM) (BVL:GRAMONC1) (“the Company” or “Graña y Montero”) a leading Engineering and Construction company, announced that GyM S.A. has signed a sale contract for its 87.59% stake in STRACON GyM, a company specialized in contract mining services, for an approximate amount of US$ 77 million. The closing of the transaction is scheduled to materialize within a maximum period of ten business days.
It should be noted that the total amount received by the Graña y Montero Group, as a result of the asset sales has been and will be used to comply with the obligations that the Group has with financial institutions. In line with the aforementioned, all of the proceeds from this sale will be used to amortize the senior financial obligations of GyM S.A. with Scotiabank Perú S.A.A. (derived from the Loan Agreement of July 14, 2015) and, partially, its financial obligations to the creditors of the Syndicated Line (Banco de Crédito del Perú, Scotiabank, Interbank, Citibank Perú and BBVA), reducing 55% of the debt of the construction company with the financial system.
With this asset sale, the Graña y Montero Group would be fulfilling the purpose of strengthening its construction company. Luis Diaz Olivero, the Group's CEO, said: "STRACON GyM was one of the assets that the Group evaluated to sell within the debt reduction process announced in 2017. By using these cash flows to reduce GyM's debt we are financially strengthening our construction company, which is currently facing credit restrictions from banking entities, just like the rest of companies in the sector."
With regard to Law 30737, recently approved by Congress in replacement of Emergency Decree 003, Graña y Montero informed that it is awaiting the publication of its regulation to constitute the established trust, currently having a preliminary list of possible assets that amount to US$ 150 million for this purpose.
Similarly, Díaz Olivero said that with the divestment in STRACON GyM, the construction company will have greater facilities to focus on the large contracts for engineering, procurement and construction of the mining sector, thanks to its experience and expertise. "Graña y Montero has developed more than 50 mining projects, has assembled 20 concentrator plants, including the largest copper concentrator plant in the world. With our new approach, the team will be able to concentrate on what we know best, which is the engineering and construction of mining projects, adding more value to the sector,” he concluded.
About STRACON S.A.C
STRACON S.A.C. is a company formed by Steve Dixon, current CEO and co-founder of STRACON GyM, and Ashmore Group, a global manager of investment funds listed on the London Stock Exchange, focused on emerging markets and which currently manages approximately US$ 70 billion of capital.