Lafarge okays plan to buy Holcim for Tk 5b

Lafarge Surma Cement today said it has approved the acquisition of Holcim Bangladesh for around Tk 500 crore, a price that was previously set by the Bangladesh Bank.

The company has informed the Dhaka Stock Exchange (DSE) that it has empowered its chief executive officer to complete the deal, the DSE said on its website today.

Read More: BB gives Lafarge 90 days to remit Tk 504cr

As per the approval given back in September 17 by the Bangladesh Bank, Lafarge can remit a total of Tk 504.78 crore for 88,244 shares of Holcim within one month, meaning the process was supposed to be completed by October 17. But Lafarge could not do it.

Later, it sought extension of time and Bangladesh Bank gave 90 days more time to remit the money.

Earlier in October, Lafarge asked the BB to review its decision, according to a position paper of the company.

In December last year, Lafarge Surma signed an agreement with Amsterdam-based Holderfin to purchase its holdings of Holcim Cement Bangladesh for Tk 936 crore ($117 million). Each of Holcim's 88,244 shares was valued at $1,325.88 (Tk 1.06 lakh).

The central bank has set the share price of Holcim in line with the international valuation method, said a BB official.