LafargeHolcim’s US$3bn spin-off in the making?

LafargeHolcim is reported to have chosen Citi and JP Morgan to explore the sale of its US$3bn Australasian operations, according to the Business Spectator.

The news follows Dataroom’s disclosure that the company had been considering a potential spin-off of its Australian and New Zealand assets. The move would help to pay for the US$50bn global merger of Lafarge and Holcim in 2014.

Both Citi and JPMorgan are understood to be among the banks funding that transaction at the time, and while neither of them confirmed the appointment yesterday, they have been named elsewhere around the market as being on the ticket, according to the business news service. The banks have been said to be preparing the business for a potential float on the Australian Securities Exchange as recently as this month.

However, it is understood that in recent days, the initial public offering plans have been placed on hold, potentially due to volatile equity capital markets that have deterred other groups from divesting their investments via a float.

In separate news, market speculation indicates that a 50 per cent stake in Cement Australia, which is jointly owned by Holcim and Hanson, was for sale.