Lafarge has said adviser JPMorgan Chase & Co has begun talks with potential investors over a sale of its stakes in cement and concrete factories in Turkey.
“JPMorgan has started negotiations with possible investors and has sent them draft sale agreements,” Lafarge said.
Standard & Poor’s lowered its credit rating for Lafarge to BBB- from BBB last month because of weaker financials. Lafarge is among European companies most likely to sell shares over the coming months to reduce debt, Societe Generale said in a report on Feb. 5.
Lafarge Aslan Cimento surged 9.3 percent to 53 Turkish Liras in Istanbul trading, the biggest gain since Dec. 29, when Lafarge said it hired JPMorgan to consider “strategic options” for its Turkish operations. Lafarge also owns cement maker Lafarge Van Çimento, which it bought from Orascom Construction Industries at the start of last year, and Lafarge Ereğli Çimento, a grinding factory, according to the company’s Turkish Web site.