Aboitz equity ventures formalizes deal with Irish cement maker CRH for the acquisition of the various Philippine assets and businesses of Lafarge SA for US$530 million. The assets of Lafarge SA include cement production as well as other cement related businessees. With this deal, Aboitz seeks to branch out into Infrastructure. The deal is expected to complete within this year.
Listed Philippine holding firm Aboitiz Equity Ventures Inc has signed $530.4 million (P24 billion) in investment agreements with CRH plc – an Ireland-based global building materials company – for acquiring assets in Philippine, including the businesses of Lafarge SA.
Aboitiz Equity had earlier disclosed to the stock exchange that it has formalized investment agreements with CRH after initially entering into an exclusivity and non-binding memorandum of understanding last May 15, 2015.
Headquartered in Dublin, Ireland, CRH is a manufacturer, supplier, and distributor of building materials which has operations in 34 countries. Its shares are listed on the London and Dublin stock exchanges, and its American Depositary Shares are listed in the New York Stock Exchange.
“The agreement will be by way of an agreed investment in holding companies for the purpose of the acquisition of the various Philippine assets and businesses of Lafarge SA. including the cement production and other cement related businesses and services,” Aboitiz Equity said in its statement.
The transaction’s full implementation and completion is expected to be within the second half of 2015, subject to the conditions under the merger of Holcim and Lafarge and the approval of the global sale of Lafarge assets.
Aboitiz Equity’s last trading price increased 0.09 per cent or P0.050 to close at P58.65.
(Source: Deal Street Asia)