Main shareholder
The main shareholder of Cementir Holding is Francesco Gaetano Caltagirone. He was born in Rome on 2 March 1943. After studying engineering, he relaunched the family construction business, then extended its activities to the fields of cement and media, giving rise to one of the largest Italian business groups, which now has five listed companies, major strategic holdings and a growing international presence. He is Chairman of Caltagirone SpA, Caltagirone Editore SpA, Il Messaggero SpA, Il Gazzettino SpA and Eurostazioni SpA.
A family-driven business
In 1992, Francesco Gaetano Caltagirone took over Cementir Holding through a public auction and, since 1996, his son Francesco Caltagirone Jr has overseen the group as its CEO and Chairman of the board, and made it truly international. While Francesco Gaetano Caltagirone is considered to be a successful Italian (net worth $2.1bn), Francesco Caltagirone Jr has gained a reputation as a dynamic CEO.
With Francesco Gaetano Caltagirone as the majority shareholder, his son as the CEO and Chairman, and the presence of five family members on the board of directors, Cementir is certainly a family-driven business. Dynamic external growth along with strong cash flow generation point to a family-type long-term philosophy and commitment to the business.
Dividend policy
From a medium-sized Italian ‘one trick pony’ profile, Cementir has evolved into a multinational, thanks to well-timed focused investments. This growth has been made possible because of a systematic and well-planned capital allocation. It maintains a payout ratio of 20% while allocating most of its profits towards strategic investments, which is unusual for a cement company expected to pay out mature cash flows. As Cementir is almost value creative (at least in 2017 and 2018), investing in growth makes sense.
Float
Cementir has a free float of 28.75%, with 71.25% shares held by the Caltagirone family (65.9% by Francesco Gaetano Caltagirone and 5.35% by his son Francesco Caltagirone Jr). This low free float has enabled the company to stick to its expansion strategy. Obviously, it leaves considerable headroom for a dilutive equity raising should Cementir go for a big fish. The question may be raised anytime if Cementir chooses to grow beyond white cement.
