By Peter OBIORA InvestAdvocate
New York (INVESTADVOCATE)- World’s building materials and cement producers, LafargeHolcim said on Monday it has signed an agreement with Siam City Cement Public Company Limited for the divestment of its interest in Holcim Lanka for an enterprise value of $400 million.
Holcim Lanka operates one integrated plant and one grinding plant and is Sri Lanka’s leading cement manufacturer. “The proceeds from the sale of the divestment business will be used to further reduce debt,” LafargeHolcim said in a statement.
This is coming on the heels of an earlier agreement this month for the divestment of Lafarge India to Nirma Limited, which the company said is a further step for LafargeHolcim towards reaching its CHF 3.5 billion divestment target for 2016.
LafargeHolcim says the Group has now secured three-quarters of the program and closing of the transaction in Sri Lanka is expected in the third quarter 2016.
