Lafarge Malaysia Bhd (LMB) is buying the entire stake in Holcim (Malaysia) Sdn Bhd (HMSB) from PT Holcim Indonesia Tbk for RM330 million following the recent merger of their respective ultimate holding companies.
In July 2015, Lafarge SA and Holcim Ltd officially launched their new combined building materials company, now known as LafargeHolcim Ltd.
“As a result, the proposed acquisition is proposed to facilitate the consolidation of the businesses of manufacturing and sale of cement, ready-mixed concrete and other related building materials of LafargeHolcim in Malaysia under LMB,” it told Bursa Malaysia last Friday.
LMB said the proposed acquisition will increase the group’s cement plants annual installed production capacity by 9.2% to 14.14 million tonnes from 12.95 million tonnes.
LMB said the the proposed acquisition is expected to deliver synergies in terms of operations, cost and capital expenditure.
“The realisation of the above synergies is expected to contribute positively to the future earnings and cash flows of the enlarged LMB group following the completion of the proposed acquisition,” it said.
The HMSB group is one of the leading building materials providers in Johor and the Southern Peninsular of Malaysia with its main base in Pasir Gudang, Johor.
LMB expects the deal to be completed by the fourth quarter of 2015 following approvals from its non-interested shareholders at an extraordinary general meeting (EGM) to be convened.