South Africa’s Pretoria Portland Cement Company (PPC) has become the largest shareholder in Habesha Cement (HC) acquiring 10 per cent shares worth ETB70m last week, according to local press reports.
A memorandum of understanding (MoU) was signed in December 2010, last year, for the acquisition of 15 per cent of the shares. However, negotiations took a long time afterwards. The South African company had contacted Ernst & Young (EY) to consult with it on the feasibility of Habesha’s project as well as the dynamics of the cement industry in Ethiopia.
PPC is the first foreign company to buy equity in Habesha. However, it may not stay that way for long or hold its prominence in the company if an MoU signed with another foreign company is followed through.
“We are in the midst of negotiations and hope to finalise the deal soon,” Mesfin told Fortune.
The anonymous company has written a letter to the Development Bank of Ethiopia (DBE) about its interest in the acquisition, according to Mesfin.