Tanzania Govt to sell its stake in Twiga
The Tanzania government is to sell its 30 per cent stake in the Tanzania Portland Cement Company Ltd to the public. The shares will be sold through the Dar es Salaam Stock Exchange and the firm expects to be listed on the market by the end of May. Once approved by the Presidential Parastatal Sector Reform Commission, the company will become the second cement firm to be listed on the bourse after Tanga Cement Company Ltd, which listed three years ago.
Klaus Hvassing, managing director of Portland Cement - commonly known as Twiga Cement after its product’s brand name - told The EastAfrican last week, "We will be listing on the DSE at the end of May." The company, established in 1959, is 69.4 per cent owned by the Heidelberg Cement Group of Germany. The government owns 30 per cent while six per cent is owned by the firm’s workers.
Joseph Mapunda, communications consultant at PSRC, said the commission was still studying the initial public offer (IPO) proposal. "Yes, we have a consultancy proposal, which we’re still studying," said Mr Mapunda. Last year, the commission appointed Core Securities Ltd as a lead advisor to co-ordinate the sale.
The government is offloading its stake in the firm as part of its economic reforms and to encourage wider share ownership of privatised parastatals by Tanzanians. The listing of Portland Cement is expected to increase activity in the market, which experts say had slowed down in recent times. Published under Cement News
