Natal Portland Cement - a wholly owned subsidiary of Cimpor said late Friday it has agreed to sell a 26% stake in the unit via a Black Economic Empowerment transaction.
Under the deal, Natal Portland Cement will be transformed into a new company in which Cimpor will own a 74% stake and the remaining 26% will be owned by a number of broad-based black empowerment groups and NPC’s employees.
The BEE transaction is based on an enterprise value of ZAR3.5bn ($1=ZAR6.96300), a spokesman for Natal Portland Cement said.
The deal will be largely vendor financed and have no significant impact on Cimpor’s net income or cashflow, Cimpor said in a statement.
The 26% stake will be owned by the company’s employee trust and Siyaka Cement Investment Holdings (Proprietary) Ltd, a broad-based black empowerment investment consortium comprised of partners based in the Kwa-Zulu Natal province. Siyaka Cement is a partnership between Nkunzi Investment Holdings and Imbewu-Aka Consortium, two black empowerment investment groups.
Cimpor said in a statement: "Rather than merely fulfilling South African legal obligations, Cimpor views this transaction as a real opportunity to develop its policy of Social Responsibility, facilitating the uplift of the quality of life in the disadvantaged areas in which the Group conducts its operations."