LafargeHolcim to divest LafargeHolcim Vietnam
Entire 65 per cent shareholding to be sold to Siam City Cement Public Company Ltd
LafargeHolcim have signed an agreement with Siam City Cement Public Company Ltd (SCCC) for the divestment of their entire 65% shareholding in LafargeHolcim Vietnam for an enterprise value of CHF867 million (on a 100% basis).
LafargeHolcim Vietnam operate one integrated plant and four grinding plants with an annual cement grinding capacity of 6.3 million tonnes. The company is also a leading ready-mixed concrete producer operating seven plants in southern Vietnam.
Closing of the transaction in Vietnam, which is subject to customary regulatory and shareholder approvals, as well as to a right of first refusal of LafargeHolcim’s joint-venture partner, is expected to occur in the fourth quarter of 2016.
Meanwhile, LafargeHolcim have also signed a framework agreement with Huaxin Cement Co. Ltd for the sale of most of the non-listed Chinese cement assets of Lafarge China Cement Ltd to Huaxin for an estimated equity value of CHF208 million. LafargeHolcim own a 41.8% shareholding in Huaxin.
Eric Olsen, chief executive officer of LafargeHolcim, said: ‘Following our announcement earlier this week to divest our listed entity Shuangma, this transaction is a further important step towards streamlining our operations in China. It will allow us to reduce debt as well as simplifying our local organization and leveraging Huaxin’s scale and capabilities.’
The assets that form part of the sale include 13 cement plants and four grinding stations with an annual cement capacity of 18 million tonnes, operating in the Yunnan, Chongqing and Guizhou provinces. The sale also includes two ready-mixed concrete plants in Chongqing province.
Through this transaction, LafargeHolcim say they will be able to reduce their net debt by CHF376 million.