Coal news and updates

Advisors to the sale of Franco-Swiss cement maker LafargeHolcim’s 11-million tonne (mt) cement capacity in India are expecting at least seven to eight bids for the assets as the firm nears the deadline for submission of non-binding bids, said three people familiar with the process.

In February, LafargeHolcim announced its plans to sell its entire cement portfolio of 11 mt held under Lafarge India Pvt. Ltd to comply with anti-trust regulations. Non-binding bids for the sale are due by 15 April, said the people quoted above.

A number of private equity firms have expressed preliminary interest in the assets.

Singapore’s sovereign wealth fund GIC Pte Ltd and private equity (PE) funds Temasek Holdings Pte Ltd, Advent International, Barings Asia Private Equity, Blackstone Group Lp, Aion Capital and the investment arm of Piramal Group are evaluating the deal, said two of the three quoted above who are involved in the transaction. Both requested anonymity as talks are confidential.

In addition to private equity firms, strategic investors Shree Cement Ltd, JSW Cement Ltd and Irish cement maker CRH Plc have expressed interest, they said.

“The divestment of assets in India is underway and we have a list of suitable candidates interested in acquiring the former Lafarge’s business in India. You will understand that at this stage we are not in a position to give you any further details on the divestment process, neither in terms of expected valuations nor with regard to specific assets,” a spokesperson for LafargeHolcim said in an email response.

The sale of Lafarge India’s assets will be one of the last large-block cement assets to go on sale and offers potential investors an opportunity to get a significant foothold in the sector in one shot. Lafarge holds its 11 mt cement capacity across Chhattisgarh, Jharkhand, Rajasthan, Haryana and West Bengal.

Source: livemint.com