Lafarge accepts Holcim’s buyout offer

MANILA, Philippines - Lafarge Republic Inc. has accepted the offer of Holcim Philippines to acquire shares of Lafarge Republic Aggregates Inc. (LRAI) and Star Terminal at the Harbour Centre in Manila under agreed terms and conditions.

In a disclosure to the Philippine Stock Exchange (PSE), Holcim said it forged an agreement with LRI  to purchase shares of stock of Lafarge Republic Aggregates, Quimson Limestrones, Sigma Cee Mining Corp. and APC Properties, as well as Star Terminal assets for P3.095  billion.

The price offered by Holcim for 100 percent of the outstanding shares of LRAI is P2.65  billion. For the Star Terminal, the price offered by Holcim Phils. is P410 million.

Subject to the fulfillment of the agreed conditions,  Lafarge Iligan and Lafarge Mindanao will remain LRI subsidiaries.

Cebu-based conglomerate Aboitiz Equity Ventures has formalized its investment agreements with Irish buildings materials firm CRH Plc/  to acquire the Philippine assets and business of Lafarge including the cement production.

AEV and CRH initially entered into an exclusivity and non-binding memorandum of understanding last May 15.

The estimated total investment of AEV in the transaction is approximately P24 billion.

According to the website of Lafarge Philippines, the company has a nationwide manufacturing network of four cement plants in Norzagaray, Bulacan; Teresa, Rizal and Taysan, Batangas, one grinding station in Danao, Cebu, and thru a subsidiary, Lafarge Iligan Inc., a cement plant in Iligan City, and an aggregates quarry in Angono, Rizal, thru a subsidiary, Lafarge Republic Aggregates  Inc.

CRH, which has operations in 34 countries, is a manufacturer, supplier, and distributor of building materials with headquarters in Dublin, Ireland. CRH shares are listed on the London and Dublin stock exchanges, and its American depositary shares are listed in the New York Stock Exchange.