LafargeHolcim divest activities in Malaysia and Singapore
Thursday, May 2, 2019 - 16:16
Company selling entire shareholdings in Lafarge Malaysia Berhad and Holcim Singapore Ltd
LafargeHolcim have signed an agreement with YTL Cement Berhad for the divestment of their entire 51% shareholding in Lafarge Malaysia Berhad for a consideration of US$396 million, fully payable in cash.
Lafarge Malaysia Berhad operate three integrated cement plants and two grinding plants, and with the divestment, LafargeHolcim will fully exit the Malaysian market.
YTL Cement Berhad are part of YTL Corporation Berhad, a Malaysian infrastructure conglomerate that is mainly active in cement production, construction, property development and utilities.
Additionally, LafargeHolcim have signed an agreement with YTL Cement Singapore PTE Ltd for the divestment of their entire 91% shareholding in Holcim Singapore Ltd.
Jan Jenisch, chief executive officer of LafargeHolcim, said: ‘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.
‘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.’
Closing of the transaction, which is subject to customary approvals, is expected during the second quarter of 2019.