France-based cement manufacturer Lafarge announced that it would sell the sake its holds in its cement unit in Honduras to Cementos Argos. The deal would be worth EUR 232 million or USD 306 million. The agreement stipulated that Cementos Argos would purchase the 53.3% stake Lafarge holds in the cement business. Cementos Argos is the leading cement maker in Colombia.

In a statement, Lafarge said the price tag for the transaction was based on the enterprise value for the business which was pegged at EUR 435 million. This represented 8.6 times the unit's EBITDA (earnings before interest, tax, depreciation and amortization) last year. The sale would still need to be approved by local regulating agencies.

The Wall Street Journal reported that Lafarge sold the Honduras unit in its bid to raise funds to pay off its debt. The French cement maker was affected by the global crisis that plagued the construction industry. This year, Lafarge has a debt load of EUR 10 billion. It wants to reduce that by EUR 9 billion next year by selling some of its assets.