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LafargeHolcim aims for dividend of at least $1.35 per share

Published 29/07/2015, 07:42
Updated 29/07/2015, 07:46
© Reuters. The company's new logo is pictured at the headquarters of LafargeHolcim in Zurich

© Reuters. The company's new logo is pictured at the headquarters of LafargeHolcim in Zurich

ZURICH (Reuters) - LafargeHolcim (VX:LHN) aims to pay a dividend of at least 1.30 Swiss francs ($1.35) per share, the world's biggest cement maker said on Wednesday while laying out objectives for the second half of the year.

"As a first step, LafargeHolcim has decided on a progressive dividend policy, starting at least at CHF 1.30 per share for the financial year 2015, subject to the approval of the Annual General Meeting in 2016," it said.

This applied to all shares, including stock paid out as a scrip dividend announced in March.

It said it expected net proceeds of around 6 billion francs (4 billion pounds) by year-end from divestments.

"This would lead to a net debt below 15.0 billion francs by year-end 2015, prior to the fair value adjustment on the Lafarge (PARIS:LAFP) debt and a potential squeeze-out of Lafarge S.A."

Chief Executive Eric Olsen said the group continued to operate in a "demanding" global market environment that had affected first-half performance.

LafargeHolcim said it expected to deliver at least 100 million francs in synergies by year's end as part of its programme to achieve 1.5 billion francs in cuts by year three.

It targeted an overall reduction in capital spending of at least 200 million francs by year-end compared to what both companies had planned to spend on a standalone basis.

The two unveiled a "merger of equals" in April 2014 but terms were revised in March after shareholders in the Swiss company complained about the deal.

As sector consolidation continues, German group HeidelbergCement (DE:HEIG) agreed to buy control of Italcementi ITAI.MI in a deal that values its smaller Italian rival at 6.7 billion euros.

© Reuters. The company's new logo is pictured at the headquarters of LafargeHolcim in Zurich

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