LafargeHolcim has signed an agreement with Semen Indonesia for the disposal of its entire shareholding of 80.6% in Holcim Indonesia. On a 100% basis, this has an enterprise value of US$1.75 billion.
The divestment of Holcim Indonesia comes as part of LafargeHolcim’s ongoing portfolio review. The assets that will be sold to Semen Indonesia include 4 cement plants, 33 ready mix plants, and 2 aggregate quarries. This accounts for the entirety of LafargeHolcim’s operations in Indonesia.
“As part of our Strategy 2022 – ‘Building for Growth,’ we have committed to divestments of at least CHF2 billion,” said Jan Jenisch, CEO of LafargeHolcim. “Today’s announcement is an important milestone in reaching our target and to increase our financial strength. The proceeds from this transaction will significantly improve our debt ratios with the target of two times net debt to recurring EBITDA to be achieved by the end of 2019.”
The closing of the transaction is subject to customary regulatory approvals.
Semen Indonesia is a major building materials company and the market leader in Indonesia.
LafargeHolcim is the global leader of building materials and solutions, operating four business segments: cement, aggregates, ready mix concrete, and solutions and products.
Read the article online at: https://www.worldcement.com/asia-pacific-rim/13112018/lafargeholcim-divests-holcim-indonesia/