Geneva: Swiss cement major Holcim, which has majority stake in Indian firms ACC and Ambuja Cement, on Monday said it has exited from Thailand-based Siam City Cement (SCC) by selling its entire 27.5 per cent stake for CHF 655 million.
The company, which is set to be merged with French cement maker Lafarge to create the world's largest building material company, said it has sold its entire 27.5 per cent stake in SCC via a private placement in capital markets.
"For the sale of its entire remaining stake, Holcim will receive a total consideration of approx CHF (swiss franc) 655 million, which will result in a gain before taxes of approx CHF 365 million," it said in a release.
Of the 27.5 per cent stake, 24.9 per cent was acquired by a member of the Jardine Matheson Group, a Hong-Kong-based conglomerate, while the remaining 2.6 per cent was purchased by a number of high quality institutional investors, it added.
"The proceeds of sale will be used for general corporate purposes. The transaction will close as per standard Stock Exchange of Thailand settlement rules," Holcim said.
SCC is a leading construction materials group which has a cement production capacity of 14.5 million tonnes per annum at its Saraburi plant. With more than 4,000 employees, it had recorded net sales of THB (Thai Baht) 31.86 billion in 2014.
Plans to combine Holcim and Lafarge, both of which have significant capacities in India, were announced in April 2014.
The combined entity would have sales of USD 40 billion and operations in 90 countries. As part of the merger, both had to sell some assets to avoid competition watchdogs.
The two had recently rescued their proposed mega merger from a near collapse with a new set of terms, agreeing to a new exchange ratio of 9 Holcim shares for 10 Lafarge shares.
