As part of its plan to sell non-core assets, Australian building materials producer, Boral has sold its Indonesian business for US$315m to the Siam Cement Group of Thailand.
Boral said it had finalised an agreement with the Thai conglomerate to sell its Indonesian construction materials business. Completion is scheduled for the end of fiscal 2011-12 and the proceeds will be used to pay down debt, Boral said.
The sale includes Boral’s concrete, quarry and precast operations, including limestone reserves in Indonesia. In FY2011, the collective businesses generated revenue of US$150m and EBITDA of US$14m.
"The sale of the Indonesian construction materials business is in line with our strategy to re-align the product portfolio to focus on core businesses where we hold leading market positions," chief executive Mark Selway said in a statement.
Meanwhile, Boral said it still expected its financial result for the six months to December 31 to be similar to the six months to June 30, 2011 after adjusting for property earnings which are all expected to arise in the second half of the year and the impact of the closure of the Galong lime plant. This produces an expected profit after to tax to be in the range of A$65- $70m, before significant items.
