CEMENT maker Lafarge Republic Inc. has finally approved the sale of its assets to Holcim Philippines Inc. and CRH-Aboitiz in line with the global merger between the Paris-based Lafarge and Switzerland’s Holcim group.
In a disclosure to the Philippine Stock Exchange (PSE), Lafarge said its board of directors on Monday approved the sale of specific assets to Holcim Philippines and for CRH Plc and Aboitiz Equity Ventures Inc. (AEV) to invest in some of Lafarge’s units.
The PSE-listed Lafarge agreed to sell its inter ests in Lafarge Republic Aggregates Inc. (LRAI) for P2.647 billion and Star Terminal in Harbour Centre Manila for P410 million.
Lafarge also included Lafarge Iligan Inc. and Lafarge Mindanao Inc. to the list of assets that will be sold to AEV and CRH Plc., although the subsidiaries will stay as Lafarge units even after the deal has been consummated.
“The estimated price for 100 percent of LRI (including Lafarge Iligan and Lafarge Mindanao) shall be equivalent to P10.26 per share payable on closing,” Lafarge said, noting that the transactions will be closed once the terms and conditions including a mandatory tender offer to the minority shareholders have been completed.
The asset sale is part and parcel of the merger plans between the global cement firms — the Paris-based Lafarge SA and Switzerland’s Holcim Limited — the offshoot of which creates the largest cement maker in the world.