Government sells off Portland Cement, Tanzania

Government sells off Portland Cement, Tanzania
27 July 2006

The Government of Tanzania is planning to sell 53,975,900 ordinary shares it holds in the Tanzania Portland Cement Company (TPCC).

Each share will be sold at Tsh435 (US$ O.34) through the Dar es Salaam Stock Exchange (DSE). Mr. Klaus Hvassing, Heidelbaerg Cement Group Managing Director, said in Dar es Salaam last week that the Government expects to get Tsh23.5billion (US$ 18.7 million) from the Initial Public Offer (IPO). The Government is by far the biggest IPO in equity participation through DSE.

The offer was opened on June 30, this year and will be closed on July 26. Listing on the DSE is slated on September 29 this year. The TPCC’s major share holder is Scencerm International of Norway, which owns 69.3 per cent of the shares.

The sale of shares is intended to raise revenue for the government and increase the Public participation in the country’s economy. Hvassing said: "The advisers to this Initial Public Offer (IPO) are Consultants for Resources Evaluation limited as lead adviser, Orbit securities co .Ltd. as a sponsoring broker, TAC Associates as reporting accountant and MA Ismail &Company Advocates as a legal advisers."

Others are Stanbic Bank (Tanzania) Ltd as a lead receiving Bank, CRDB Bank Ltd as receiving bank, and Tanzania Posts Corporation (TPC) as receiving agent.

Published under Cement News