Holcim has completed the sale of 85 per cent of its 54 per cent stake in Holcim South Africa to AfriSam Consortium (Pty) Ltd based on an enterprise value of ZAR 16.4bn. The transaction makes Holcim South Africa the leading black-controlled company in the building materials sector and creates an excellent platform for the further development of this company.
Holcim maintains a 15 percent stake in Holcim South Africa. Holcim retains a range of pre-emption and investment rights, which cannot be exercised in a way that would compromise the company’s BEE credentials, and will continue to provide technical assistance. As a consequence, the South African company will be deconsolidated and henceforth equity accounted. The proceeds of the sale of ZAR 7.5bn will be used for the further growth of the Holcim Group.
Holcim South Africa has a consolidated annual capacity of 4.1Mt of cement. For 2006, the company reported sales of CHF 918m and an operating profit of CHF 253 million, with a workforce of some 2,000. The company has a 62.5 per cent interest in Tanzania-based and listed Tanga Cement Company.