PSGTY Pt Semen Indonesia Persero TBK (PK)

   By P.R. Venkat 
 

Swiss cement company LafargeHolcim Ltd. (LHN.EB) has agreed to sell its entire stake in unit PT Holcim Indonesia (SMCB.JK) to PT Semen Indonesia (Persero) (SMGR.JK) for $1.75 billion.

The sale of its 80.6% stake in the Indonesian unit is part of LafargeHolcim's continuing review of its business, which includes the divestment of at least 2 billion Swiss francs ($1.98 billion) in assets, to boost its financial strength, LafargeHolcim Chief Executive Jan Jenisch said in a statement.

"The proceeds from this transaction will significantly improve the company's debt ratios with the target of two times net debt to recurring Ebitda (earning before interest, tax, depreciation and amortization) to be achieved by the end of 2019," Mr. Jenisch said.

Semen Indonesia is 51% owned by the Indonesian government. Another 16.75% stake is held by institutions and the rest is owned by the public.

Semen Indonesia will own LafargeHolcim's four cement plants, 33 ready-mix plants and two aggregate quarries following regulatory approval.

Write to P.R. Venkat at venkat.pr@dowjones.com

(END) Dow Jones Newswires

November 12, 2018 23:45 ET (04:45 GMT)

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