Bulletin: Holcim's Divestment Of Its India Business Will Improve Leverage, But Only Temporarily - S&P Global Ratings’ Credit Research

Bulletin: Holcim's Divestment Of Its India Business Will Improve Leverage, But Only Temporarily

Bulletin: Holcim's Divestment Of Its India Business Will Improve Leverage, But Only Temporarily - S&P Global Ratings’ Credit Research
Bulletin: Holcim's Divestment Of Its India Business Will Improve Leverage, But Only Temporarily
Published May 17, 2022
2 pages (1182 words) — Published May 17, 2022
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Abstract:

LONDON (S&P Global Ratings) May 17, 2022--S&P Global Ratings said today that Switzerland-headquartered Holcim Ltd. (BBB+/Stable/A-2) will see a significant improvement in leverage due to the announced divestment of its India businesses Ambuja Cement and ACC to Adani Group for net cash proceeds of Swiss franc (CHF) 6.4 billion. The transaction comprises Holcim's 63.11% stake in Ambuja Cement, which owns a 50.05% stake in ACC, as well as its 4.48% direct stake in ACC. Management anticipates the transaction to close in the second half of 2022, subject to regulatory approvals. The proceeds will enable Holcim to deleverage to S&P Global Ratings-adjusted debt to EBITDA of about 1.0x in 2022 and 2023, from about 1.8x in 2021, compared with our forecast

  
Brief Excerpt:

...May 17, 2022 LONDON (S&P Global Ratings) May 17, 2022--S&P Global Ratings said today that Switzerland-headquartered Holcim Ltd. (###+/Stable/A-2) will see a significant improvement in leverage due to the announced divestment of its India businesses Ambuja Cement and ACC to Adani Group for net cash proceeds of Swiss franc (CHF) 6.4 billion. The transaction comprises Holcim's 63.11% stake in Ambuja Cement, which owns a 50.05% stake in ACC, as well as its 4.48% direct stake in ACC. Management anticipates the transaction to close in the second half of 2022, subject to regulatory approvals. The proceeds will enable Holcim to deleverage to S&P Global Ratings-adjusted debt to EBITDA of about 1.0x in 2022 and 2023, from about 1.8x in 2021, compared with our forecast in March of 1.8x-1.9x in 2022 and 1.7x-1.8x in 2023. That said, we consider that the improvement in leverage will be only temporary and therefore neutral for the rating. This is because we believe that Holcim will reinvest the funds...

  
Report Type:

Bulletin

Ticker
HOLN@VX
Issuer
Holcim Ltd
GICS
Construction Materials (15102010)
Sector
Global Issuers
Country
Switzerland
Region
Pacific
Format:
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MLA:
S&P Global Ratings’ Credit Research. "Bulletin: Holcim's Divestment Of Its India Business Will Improve Leverage, But Only Temporarily" May 17, 2022. Alacra Store. May 03, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Holcim-s-Divestment-Of-Its-India-Business-Will-Improve-Leverage-But-Only-Temporarily-2839612>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: Holcim's Divestment Of Its India Business Will Improve Leverage, But Only Temporarily May 17, 2022. New York, NY: Alacra Store. Retrieved May 03, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Holcim-s-Divestment-Of-Its-India-Business-Will-Improve-Leverage-But-Only-Temporarily-2839612>
  
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