Cimpor to restructure South African subsidiary
Cimpor announced in a regulatory filing on December 28, 2006 that its South African subsidiary Natal Portland Cement Company Limited (NPC) signed a set of agreements, envisaging the restructuring of the company in accordance with the Black Economic Empowerment (BEE) in South African legislation. The changes will take effect as of January 1, 2007.
Following these agreements, NPC will split its cement production and sales activity, which will be resumed by a new company. It will be 74 pct held by Cimpor, 5.5 pct by a trust owned by the company’s employees, NPC Staff Trust, and 20.5 pct by a business consortium. This business consortium, named Siyaka Cement Investment Holdings Limited is a partnership of NPC Education and Entrepreneurial Development Trust, with a 26 pct interest, Nkunzi Investment Holdings, a Kwa-Zulu Natal black owned investment company, and Imbewu-Aka Consortium.
The BEE transaction will be almost entirely vendor financed, having no significant impact on Cimpor group’s net income or cash inflow, the Portuguese company added in its note.
Cimpor noted that the transaction offers 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, and to achieve a higher shareholder value creation.
Published under Cement News
