Cimpor Sells 26% Stake In S Africa Cement Co In BEE Deal
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."
Published under Cement News
