LafargeHolcim: Oddo confirms rating

(CercleFinance.com) - LafargeHolcim has announced the cancellation of the agreement reached a year ago with the San Miguel Corporation conglomerate to sell its 87.
5% stake in Holcim Philippines Inc, for an enterprise value of 2.15 billion (100% basis).

Oddo says that the Philippine competition authorities did not approve of the transaction within the required time frame and that as a result, the agreement "lapsed".

The group has confirmed the strength of its balance sheet however, including liquidity of 8 billion Swiss francs as at 26 March 2020, along with free cash of 4.1 billion Swiss francs. It even made two bond issues exceeding 700 million Swiss francs, the broker adds.

Oddo confirms its buy rating on the share, along with its target price of 42 Swiss francs. It believes that this price is an attractive entry point for long-term investors, even though, like the market, the stock still seems that it will see chaotic and volatile changes.

The broker adds that the strength of its balance sheet should enable the group to implement the last stage of its strategy: a structuring acquisition at an attractive price.


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