LafargeHolcim - Schmidheiny, scrip and San Miguel

Davy Research
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It is hardly surprising that LafargeHolcim’s largest shareholder has cut his stake in the group. Having engineered the merger, navigated the tricky integration and subsequently stepped away from the Board, it was probably time to take something off the table. Unfortunately, despite a lock-up it has the potential to create an over-hang when the stock trades close to CHF50. The group, meanwhile, continues to successfully reduce debt, helped by disposals and the scrip dividend. The sale of Holcim Philippines will make a large dent in the debt, presuming local opposition proves unwarranted.