LafargeHolcim is to dispose of its entire shareholding of 80.6% in Holcim Indonesia for a value of $1.7 billion, on a 100% basis. The company will sell all related assets to Semen Indonesia, a building materials group, as a part of an ongoing portfolio review.
The full scope of these assets include four cement plants, 33 ready-mix plants and two aggregates quarries.
Jan Jenisch, CEO of LafargeHolcim, says: “As part of our Strategy 2022 – ‘Building for Growth’ we have committed to divestments of at least CHF 2 billion. Today’s announcement is an important milestone in reaching our target and to increase our financial strength. The proceeds from this transaction will significantly improve our debt ratios with the target of 2 times Net Debt to Recurring EBITDA to be achieved by the end of 2019.”
The closing of the transaction is subject to customary regulatory approvals.