GEORGE TOWN (Sept 18): Lafarge Malaysia Bhd plans to acquire PT Holcim Indonesia Tbk’s wholly-owned subsidiary here, Holcim (Malaysia) Sdn Bhd, for RM330 million cash, as part of its parent LafargeHolcim Ltd’s plans to consolidate the businesses of manufacturing and sale of cement, ready-mixed concrete and other related building materials in Malaysia.

Holcim (Malaysia) is principally involved in the manufacturing and sale of cement.

In a filing with Bursa Malaysia today, Lafarge Malaysia said it has entered into a conditional share purchase agreement with Holcim Indonesia for the proposed acquisition.

Holcim Indonesia’s original cost of investment in Holcim (Malaysia) was US$36.89 million (RM131.6 million), which was incurred on May 18, 2009.

Lafarge Malaysia said it plans to finance the purchase consideration via a combination of internal funds and/or bank borrowings.

The group added that the proposed acquisition would increase the cement plants’ annual installed production capacity of the enlarged Lafarge Malaysia Group from 12.95 million tonnes to 14.14 million tonnes.

“The realisation of the synergies is expected to contribute positively to the future earnings and cash flows of the enlarged Lafarge Malaysia Group following the completion of the proposed acquisition,” it said.

The proposed acquisition is expected to be completed by the fourth quarter of 2015.

Lafarge Malaysia shares rose eight sen or 0.87% to close at RM9.29 today, giving it a market capitalisation of RM7.8 billion.

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