Holcim sells entire stake in Thailand's Siam City Cement for $681 mn

Swiss cement giant Holcim Ltd today announced the sale of its entire remaining stake of 27.5 per cent in Thailand's second-largest cement company, Siam City Cement Company Ltd (SCCC), in deals worth 655 million Swiss francs (458 million pounds).

The transaction has been carried out via a private placement in the capital market, Holcim said in a release.

Of the 27.5 per cent, a member of the Hong-Kong-based conglomerate Jardine Matheson Group acquired 24.9 per cent while major institutional investors bought the remaining 2.6 per cent.

Holcim said it will use the proceeds of the sale for general corporate purposes. The transaction will close as per standard Stock Exchange of Thailand (SET) settlement rules, it added
 
SCCC is a leading construction materials group, which has a cement production capacity of 14.5 million tonnes at its Saraburi plant. With more than 4,000 employees, the company recorded net sales of THB 31.86 billion in 2014.

Reports quoting sources close to the deal said Holcim made the decision to sell the Siam City shares as it could not build up a majority in that company.

Holcim is one of the world's leading suppliers of cement and aggregates (crushed stone, gravel and sand) as well as further activities such as ready-mix concrete and asphalt, including services.

The group holds majority and minority interests in around 70 countries on all continents.

Zurich-based Holcim, which plans to merge with France's Lafarge, last week said the boards of Holcim and Lafarge have reached an agreement on revised terms for the merger of equals between both companies.