First publishedon www.AggBusiness.com
LafargeHolcim has signed an agreement with Semen Indonesia for the disposal of its entire shareholding of 80.6% in Holcim Indonesia for an enterprise value of US$1.75 billion, on a 100% basis. Semen Indonesia is a major building materials company and the market leader in Indonesia.
The Franco-Swiss global building materials giant has decided to divest Holcim Indonesia as part of the ongoing portfolio review. The assets to be sold to Semen Indonesia include the entirety of LafargeHolcim’s operations in Indonesia, which consists of four cement plants, 33 ready-mix plants and two aggregate quarries.
Jan Jenisch, CEO of LafargeHolcim, said: “As part of our Strategy 2022 – ‘Building for Growth’ we have committed to divestments of at least CHF 2 billion. This 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 2 times Net Debt to Recurring EBITDA to be achieved by the end of 2019.”
Closing of the transaction is subject to customary regulatory approvals.