First publishedon www.AggBusiness.com
Building materials and solutions company LafargeHolcim has completed the divestment of its activities in Malaysia.
The process was finalised with the disposal of LafargeHolcim's entire 51% shareholding in Lafarge Malaysia Berhad to YTL Cement Berhad for a total enterprise value of CHF982m (€872m). Lafarge says the transaction will reduce the group’s net financial debt by CHF600m (€533m).
Together with the divestment of its activities in Indonesia, Singapore and the Philippines, Lafarge says that the Malaysia transaction will result in a significant deleverage of 0.6 times net debt to recurring EBITDA ratio and allow the company to overachieve its target ratio of 2 times or less by the end of 2019.
LafargeHolcim has been divesting operations in what it terms fringe markets, and earlier this year completed the sale of its majority stake in Holcim Indonesia to Semen Indonesia for US$1.75bn.