Holcim Sells Siam City Cement Stake

ZURICH--Holcim Ltd (HOLN.VX) sold its stake in Siam City Cement (Public) Company Ltd. for 655 million Swiss francs ($681 million), the Swiss cement giant said Monday.

Jona-based Holcim said the sale of its 27.5% stake in the Thai company would result in a pre-tax gain of roughly 365 million francs. The sum was booked in the first quarter, Holcim said.

Jardine Matheson Group (JAR.LN), a Hong Kong conglomerate, bought 24.9% of SCC from Holcim, while institutional investors purchased 2.6%. Holcim had held a stake in SCC since 1998, a Holcim spokesman said, and began selling off its investment in 2012.

Holcim said the sale wasn't related to its pending $44 billion union with Paris-based Lafarge SA (LG.FR). The two companies, which aim to create a building-materials giant, have agreed to sell assets in Europe, North America and the Philippines as part of their efforts to win approval from anti-trust authorities.

The Holcim-Lafarge union hit a new bump over the weekend when Eurocement Holding AG, Holcim's second-largest shareholder, said it would oppose the deal unless new terms were struck. Earlier this month the deal was restructured to offer nine Holcim shares for 10 Lafarge shares after investors complained the original terms undervalued Holcim.

The deal was originally a one-for-one share swap.

Holcim shareholders meet on May 8 to vote on the deal.

-Write to John Revill at [e-mail]

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