01/31/2015

Bankers All Set Financial Obligation As Proposals Due On Lafarge Holcim Possessions

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LONDON (Reuters) – Lenders are lining up just over 1 billion pounds ($1.51 billion) of debt financing to back personal equity company KKR’s potential bid for the UK possessions of cement makers Lafarge (LAFP.PA) and Holcim (HOLN.VX), banking sources said on Friday.

The UK assets are for sale alongside a number of other assets worth about 12 percent of Frances Lafarge and Swiss peer Holcims combined revenues, in order for a planned merger in between them to go ahead developing the world’s leading cement group with $44 billion in yearly sales.Binding proposals are due

January 12, the banking sources said.Debt bundles of just over 1 billion pounds for the UK assets equates to around 5.5 times Revenues Prior to Interest, Tax, Depreciation and Amortisation (EBITDA) of roughly 170 million pounds, consisting of undrawn financial obligation. Holcims French activities, Lafarges German interests and other operations in

Austria, Hungary, Romania, Serbia, Britain, Canada, the Philippines, Mauritius and Brazil are up for sale in an offer which might fetch 6 billion euros ($7.08 billion) in total.The sale of the possessions has actually drawn in interested from a variety of bidders including Irish cement maker CRH(CRH.I); Blackstone(BX.N ), Cinven and Canadian pension fund CPP; and a group consisting of CVC and sovereign wealth funds the Abu Dhabi Financial investment Authority(ADIA) and Singapores GIC. Meanwhile, Italys Italcementi (ITAI.MI)and Turkeys Sabanci (SAHOL.IS)are expected to bid for some assets.India’s Aditya Birla Group is anticipated to bid for continental European possessions, two of the sources stated. Lenders are dealing with debt bundles of up to 4.5 billion euros to back personal equity proposals for all the assets, relating to around 5.5 times

EBITDA of roughly 725-730 million euros, consisting of undrawn debt.Lafarge, Holcim and KKR declined to comment. Aditya Birla Group was not instantly offered to comment.($1= 0.6606 pounds)($1 =0.8469 euros) (Additional reporting by Matthieu Protard and Gilles Guillaume in Paris; Editing by Christopher Mangham )


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