Lafarge Republic Inc. (LRI), the local arm of international cement giant Lafarge S.A., is negotiating the sale of some subsidiaries to Holcim Philippines Inc. (HPI) in line with the global merger of Lafarge S.A. and Holcim Ltd.
In a disclosure to the Philippine Stock Exchange, LRI said its board of directors authorized the study, consideration and negotiation of the sale of some of its assets to HPI.
The LRI subsidiaries being offered to HPI include the Lafarge Iligan Inc., Lafarge Mindanao Inc., and Lafarge Republic Aggregates, Inc., as well as LRI’s Star Terminal at the Harbour Centre Port Terminal in Manila.
Apart from the four assets, LRI said it may include “other specific assets, contracts or businesses as may be identified and negotiated between the parties, under terms and conditions to be agreed…which will be subject to the completion of the global merger between Holcim Ltd. and Lafarge S.A.”
In a separate statement released on Tuesday, HPI said that it is “considering” invesment negotiations with LRI, saying that the results of the negotiations will be subject to HPI’s board approval.
Meanwhile, LRI’s major shareholders are also planning to sell their respective shares “to potential third party buyers” subject to other terms and conditions and the completion of the global Lafarge-Holcim merger.
The major stockholders planning to sell their LRI interests are Calumboyan Holdings Inc., Lafarge Holdings Philippines Inc., Round Royal Inc. and South Western Cement Ventures Inc.
The four shareholders account for a total of 88.8 percent stake in LRI.
HPI is one of the leading cement producers in the Philippines, manufacturing cement and aggregates (crushed stone, gravel and sand). It has downstream activities such as ready-mix concrete and asphalt. Currently, it has four cement plants in La Union, Bulacan, Misamis Oriental, and Davao.
Formerly known as Republic Cement Corp., LRI is incorporated in 1955. It is involved in production and distribution of cement. It has existing plants in Bulacan, Batangas and Rizal. Its subsidiaries are Fortune Cement Corp., Lafarge Iligan Inc., Lafarge Mindanao Inc., FR Cement Corp., and Lloyds Richfield Industrial Corp.
KRISTYN NIKA M. LAZO