PPC, NovaCimangola bid for Congo cement stake-govt

PPC, NovaCimangola bid for Congo cement stake-govt
Published: 14 October 2011

PPC and NovaCimangola SA are the two final bidders to buy a 58 per cent stake in Democratic Republic of Congo’s state-owned cement producer, Cimenterie Nationale (CINAT), after they had their technical bids accepted, the government said on Thursday.

Reuters reports that PPC valued the entire company at US$75m, and made a conditional offer of US$43.5m for the stake, according to Marc Ejiba, a government spokesman.

NovaCimangola SA made an offer of US$40.6m, noting that it would be necessary to invest US$54m within three years to fund expansion and to tackle CIMAT’s debt.

"The valuation committee is going to be able to examine these offers and make their proposition (to the government)" Ejiba stated.

CIMAT has a factory 200km from Kinshasa capable of producing 1000tpd but has been hampered by a lack of investment.