LISTED Holcim Philippines Inc. is acquiring the assets of Lafarge Republic Inc. in line with the anticipated merger of the global firms to form the largest cement company in the world.
In a disclosure to the Philippine Stock Exchange (PSE), the company said its board of directors gave Holcim and its subsidiary Holcim Mining and Development Corp. “to make an offer for, and – should the offer be accepted – proceed with the acquisition…”
These assets include Lafarge Republic’s equity in Lafarge Iligan Inc., Lafarge Mindanao Inc., Lafarge Republic Aggregates Inc., Quimson Limestones Inc., Sigma Cee Mining Corp. and APC Properties Inc.
Other than the Lafarge subsidiaries, the prospective transaction would include Lafarge’s interests in Star Terminal in Harbour Centre-Manila, as well as certain parcels of land mutually identified by both Holcim and Lafarge.
“The board approved to acquire the assets which are enumerated. This offer is subject to acceptance of Lafarge Republic and their subsidiaries,” Eduardo Sahagun, Holcim
Philippines president CEO, said in an email message.
The offer “shall be consistent with the conditions approved by the board” as these assets were already factored in for a strategic fit on the potential synergies for both companies.
The board also authorized Sahagun as the main man when it comes to the agreements and transactions related to the offer.
The asset sale is in line with the announcement made by Paris-based Lafarge SA and Switzerland-based Holcim Limited in mid-2014 concerning plans for a merger which are still subject to regulatory approvals.