LafargeHolcim has signed a framework agreement with Huaxin Cement (Huaxin) for the sale of most of the non-listed Chinese cement assets of Lafarge China Cement (LCC) to Huaxin for an estimated equity value of CHF 208 million (€.192.27 million). LafargeHolcim owns a 41.8% shareholding in Huaxin. Eric Olsen, CEO 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
LafargeHolcim has signed a framework agreement with Huaxin Cement (Huaxin) for the sale of most of the non-listed Chinese cement assets of Lafarge China Cement (LCC) to Huaxin for an estimated equity value of CHF 208 million (€.192.27 million). LafargeHolcim owns a 41.8% shareholding in Huaxin.
Eric Olsen, CEO 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, simplify our local organisation and leverage Huaxin’s scale and capabilities.”
The deal is subject to the following conditions precedents, aside from the customary conditions including regulatory approvals: (a) approval of the Shareholders Meeting of Shuangma on the cancellation of the non-compete undertakings made by LCCL and/or its affiliates to Shuangma; (b) approval of the Shareholders Meeting of Huaxin on the proposed related party transaction.
The assets that form part of the sale include 13 cement plants and 4 grinding stations with an annual cement capacity of 18 million tonnes operating in Yunnan, Chongqing, and Guizhou provinces. The sale also includes two ready-mix concrete plants in Chongqing province.
