The management of Dangote Group at the weekend confirmed plans to increase its shareholding in South Africa’s Sephaku Cement Limited from the present 19.8 per cent to 64 per cent.
Aliko Dangote, President and Chief Executive of Dangote Group, said the decision to increase its stake in Sephaku Cement is part of its Sub-Saharan expansion project.
Sephaku Holdings had earlier announced that the decision was reached by both parties, and that: “”the board is pleased to announce that a heads of agreement has been signed with Dangote in relation to the funding of a Cement Project held by its 80.2 per cent-held subsidiary, Sephaku Cement.”
The Agreement further states: “In terms of the Dangote agreement and subject to, inter alia, shareholder approval and the approval of the JSE Limited and any other requisite regulatory bodies, Sephaku Cement will undertake an issue of additional shares to Dangote in order to raise ZAR779m. This will result in Dangote holding a 64 per cent interest in Sephaku Cement.”” Sephaku Cement is also building a 2.2Mta cement plant in South Africa.