Sephaku Holdings confirmed on Wednesday that Nigeria’s largest cement company, Dangote, would invest an additional ZAR779m (US$106.5m) into its subsidiary company Sephaku Cement.
The investment would increase the Dangote group’s equity stake in Sephaku Cement from 19,76%, which it acquired in 2008, to 64%, and completes the equity requirements for existing projects.
Sephaku Holdings CEO Neil Crafford-Lazarus said the company had now secured the full equity requirement for its cement projects and would be well positioned to finalise debt-funding terms.
The equity investment by Dangote would be used to fund the development of Sephaku Cement’s Aganang and Delmas projects in South Africa.
The Aganang project includes a limestone mine and cement manufacturing plant in the North West province and is scheduled to produce about 900,000tpa of cement by 2012.
Sephaku’s Delmas project comprises a cement milling plant in Mpumalanga, which would produce 1.25Mta of cement by late 2012.
Dangote group CEO Alhaji Aliko said that the investment would provide the company with an enhanced presence in the South African market.
"We are looking forward to producing cement by the end of 2012, as we seek to become the largest cement producer in Africa by 2014," he added.