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LafargeHolcim divests activities in Malaysia and Singapore

Published by , Editorial Assistant
World Cement,

LafargeHolcim has signed an agreement with YTL Cement Berhad for the divestment of its entire 51% shareholding in Lafarge Malaysia Berhad for a consideration of US$396 million, fully payable in cash, corresponding to MYR3.75/share. This price represents a premium of 43% compared to the last 90 day trading period of Lafarge Malaysia Berhad on the Malaysian stock exchange.

Lafarge Malaysia Berhad operates three integrated cement and two grinding plants. With the divestment, LafargeHolcim will fully exit the Malaysian market. YTL Cement Berhad is part of the YTL Corp. Berhad, a Malaysian infrastructure conglomerate that is mainly active in cement production, construction, property development, and utilities.

In addition, LafargeHolcim has signed an agreement with YTL Cement Singapore PTE Ltd for the divestment of its entire 91% shareholding in Holcim Singapore Ltd.

The proceeds of both transactions will allow LafargeHolcim to further improve its debt ratio by approximately 0.1 times, contributing to reaching its target ratio of net debt to recurring EBITDA of two times or less by the end of 2019 (this target is before the application of IFRS 16 and at constant foreign exchange).

Closing of the transaction is expected in 2Q19 and is subject to customary approvals.

“As part of our Strategy 2022 – ‘Building for Growth’, we have committed to divestments in order to deleverage and to further strengthen our balance sheet,” said Jan Jenisch, CEO of LafargeHolcim. “The proceeds from this transaction will further improve our debt ratios with the target of two times net debt to recurring EBITDA by the end of this business year.”

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LafargeHolcim news Cement news 2018