Holcim to sell South African stake

ZURICH – Swiss cement maker Holcim said it aimed to sell the largest part of its South-African business and posted a jump in first-half net profit, as expected, as the construction sector booms.

The world’s second-largest cement maker said yesterday it planned to sell 85 per cent of its majority stake in its Holcim South Africa unit to a Black Economic Empowerment Consortium, a stake it values at around 1,2 billion Swiss francs. South-African law requires Holcim like all other mining and cement companies to sell part of their businesses to a Black Economic Empowerment Consortium, but Holcim said it was not forced to sell at a discount.Net profit rose 44 per cent to 1,088 billion francs from 757 million a year ago, coming in just above the average forecast of 1,034 billion francs in a Reuters poll of 12 analysts.Sales rose 38 per cent to 10,9 billion francs, Holcim said, as the group benefits from a construction boom in most of its markets, while a spate of acquisitions and solid prices for its products lifted its business.Nampa-ReutersSouth-African law requires Holcim like all other mining and cement companies to sell part of their businesses to a Black Economic Empowerment Consortium, but Holcim said it was not forced to sell at a discount.Net profit rose 44 per cent to 1,088 billion francs from 757 million a year ago, coming in just above the average forecast of 1,034 billion francs in a Reuters poll of 12 analysts.Sales rose 38 per cent to 10,9 billion francs, Holcim said, as the group benefits from a construction boom in most of its markets, while a spate of acquisitions and solid prices for its products lifted its business.Nampa-Reuters