Lafarge sells 11.2% stake in Malaysian cement unit

The seller raises $185 million by reducing its stake in Lafarge Malayan Cement to 51%, but vows to retain a majority ownership.

France-based construction materials producer Lafarge has sold an 11.2% stake in its Malaysian subsidiary, Lafarge Malayan Cement, as part of a wider divestment programme this year. The deal, which was completed through a block trade after the market closed yesterday, was flagged as a possibility earlier this month and was preceded by a roadshow.

Lafarge offered 95.2 million shares at a price between M$6.18 and M$6.37 apiece, which represented a discount between 1.7% and 4.6% versus yesterday's close of M$6.48. The final price was fixed below the mid-point at M$6.24 for a discount of 3.7% and a total deal size of M$594 million $185 million.

A source said there was good demand from long-only...

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