ZUG, Switzerland--(BUSINESS WIRE)--Regulatory News:
LafargeHolcim has signed an agreement with YTL Cement Berhad for the divestment of its entire 51 percent shareholding in Lafarge Malaysia Berhad for a consideration of USD 396 million fully payable in cash, corresponding to MYR 3.75 per share. This price represents a premium of 43 percent compared to the last 90 days trading period of Lafarge Malaysia Berhad on the Malaysian stock exchange.
Lafarge Malaysia Berhad operates three integrated cement and two grinding plants. With the divestment, LafargeHolcim will fully exit the Malaysian market. YTL Cement Berhad is part of YTL Corporation Berhad, a Malaysian infrastructure conglomerate, which is mainly active in cement production, construction, property development and utilities.
Additionally, LafargeHolcim has signed an agreement with YTL Cement Singapore PTE Ltd for the divestment of its entire 91 percent shareholding in Holcim Singapore Ltd.
The proceeds of both transactions will allow LafargeHolcim to further improve its debt ratio by approximately 0.1 time, contributing to reach its target ratio of Net Debt to Recurring EBITDA of 2 times or less* by the end of 2019.
Jan Jenisch, CEO: “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 2 times* Net Debt to Recurring EBITDA by the end of this business year.”
Closing of the transaction is expected within Q2, 2019 and is subject to customary approvals.
*Before application of IFRS 16 and at constant foreign exchange
LafargeHolcim is the global leader in building materials and solutions. We are active in four business segments: Cement, Aggregates, Ready-Mix Concrete and Solutions & Products.
With leading positions in all regions of the world and a balanced portfolio between developing and mature markets, LafargeHolcim offers a broad range of high-quality building materials and solutions. LafargeHolcim experts solve the challenges that customers face around the world, whether they are building individual homes or major infrastructure projects. Demand for LafargeHolcim materials and solutions is driven by global population growth, urbanization, improved living standards and sustainable construction. Around 75,000 people work for the company in around 80 countries.
More information is available on www.lafargeholcim.com
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About YTL Cement Berhad
YTL Cement is a subsidiary of YTL Corporation Berhad one of the largest companies listed on Bursa Malaysia Securities Berhad. YTL Corp. is an integrated infrastructure developer with international operations in countries including the United Kingdom, Singapore, Indonesia, Australia, Japan, Jordan and China. The YTL Group’s core businesses comprise power generation (in both contracted and merchant markets), owning and managing water and sewerage facilities, merchant multi-utility services, communications, construction contracting, cement manufacturing, property development and investment, hotel development and management, e-commerce initiatives and internet based education solutions and services.
More information is available on www.ytl.com