A N N U A L R E P O R T A N D A C C O U N T S - CMVM

Management Report of the Board of Directors - Financial Year 2008
stock of the Seville-based company, “ARENOR, S.L.”,
which operates in the Spain’s concrete and aggregates
sector and holds a stake in local companies and in other
countries. In May 2008, Teixeira Duarte Group promised to
purchase a share of more than 22.86% of ARENOR, S.L.’s
capital, and the signing of the final contract is currently
underway.
In March 2008, ARENOR, SL sold part of its stake in a
number of companies, while other already owned
companies sold some of their assets allocated to their
activities and are carrying out the subsequent processes for
their dissolution.
The funds deriving from those sales provided the capital for
new investments, and ARENOR, SL:
Incorporated, in August 2008, the company “Arenor-
Hormigones Sevilla, SLU”, for the purpose of continuing to
exploit a concrete plant in that Spanish Province;
Incorporated, under the Portuguese law, “ARENOPOR –
SGPS, S.A.”, which has subsequently made investments in
other investee companies:
“Banco Comercial Português, S.A.” - 23 million shares,
corresponding to 0.5% of its capital stock;
“LUSOBETÃO – Betões de Portugal, S.A.” – 15% of the
capital stock, expecting to purchase another 15% in the first
quarter of 2009;
Made some acquisitions in Bulgaria through a local company
called ARENOR BULGÁRIA, which, in turn, holds 100% of
another local company with “CIMBUL”, which will be
dedicated to the exploitation of quarries and to concrete
manufacture and sale.
- MACAO
C+P.A., S.A. remained associated with its shareholder
CIMPOR, S.A. and with local partners of Teixeira Duarte,
to perform operations in the strategic market of the
People’s Republic of China, through the Macao-based
company “Sociedade de Investimento CIMPOR - Macau,
S.A.”, 25% owned by C+P.A., S.A. and which also holds a
stake in other companies incorporated under the Chinese
law.
Those local companies have a total of two clinker production
lines with capacity for 2,800,000 ton/year each and two
cement mills, one with a production capacity of 1,200,000
ton/year and the other 600,000 tons/year, operating in the
province of South Sandong and Jiangsu, including the
Shanghai area.
This is a market in which an increase in production capacity
and new investments are expected.
- NAMIBIA
The project that C+P.A., S.A. had underway in Namibia for the
purpose of creating and installing a cement production and
clinker storage plant have ended with the acquisition, still in
2007, of KARIBIB PORTLAND CEMENT, a company
incorporated under the Namibian law, with registered head
office in Windhoek, Namibia.
Following a long and complex process carried out with the
different Namibian authorities, this investee company, in the
middle of 2008, obtained the mining license and the
environmental license, which allow it to commence the works
for the installation of a clinker production plant, in the city of
Karibib, for the purpose of producing cement.
At the same time and for the optimisation of the commercial
line which is expected to be implemented within the scope of
this project, an agreement was signed with the local
company “SYRENE INVESTMENTS (PTY) Ltd.”, which
implied the acquisition (by “KARIBIB PORTLAND CEMENT,
Ltd.”) of 60% of another local company incorporated under
the Namibian law, “KPC TRADING and SERVICES
(Proprietary) Limited”, as well as the selling of 5% of
“KARIBIB PORTLAND CEMENT, Ltd.” to these new
partners.
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