Holcim SA retains 62.5 per cent stake in Tanga Cement
The recent acquisition of an 85 per cent stake in Holcim South Africa by a South African Black Economic Empowerment (BEE) consortium from Holcim Ltd of Switzerland will not alter Holcim South Africa’s status in the Tanzania-based Tanga Cement Company.
The consortium, AfriSam, is a broad-based BEE company established specifically for the Holcim acquisition. Black Economic Empowerment wants to bring about a significant increase in ownership, management and control of the economy by South Africans from historically disadvantaged communities.
Holcim Ltd of Switzerland signed a conditional agreement in September to sell 85 per cent of its stake in Holcim South Africa to AfriSam, based on an enterprise value of 15.5 billion rand ($2.1 billion.) Holcim Ltd is one of the world’s leading suppliers of cement, crushed stone, sand and gravel, ready-mix concrete and asphalt.
Holcim South Africa will meanwhile maintain its 62.5 per cent shareholding in the Tanga Cement since the Holcim deal "has not affected its business in Tanzania."
Juerg Fluehmann, managing director of Tanga Cement said, "The proposed transaction has no impact on Tanga Cement’s shareholding, management or the board of directors in the foreseeable future."
Holcim will retain a 15 per cent shareholding in the newly founded AfriSam, which will hold a 54 per cent share in Holcim South Africa. Holcim will continue to provide technical assistance through the current technical arrangement.
Mr Fluehmann said Holcim South Africa is satisfied with the overall performance of Tanga Cement, which has seen earnings per share increase by 87 per cent in the first six months of the current financial year compared with the same period last year.
Tanga Cement is listed on the Dar es Salaam Stock Exchange, and trades its shares under the Simba brand. Holcim Ltd of Switzerland has shareholdings in companies in more than 70 countries around the world.
Holcim will maintain its 15 per cent share in the newly founded AfriSam, which will hold a 54 per cent share in Holcim South Africa. Holcim will continue to provide technical assistance through the current technical arrangement.
Published under Cement News
