PPC to consider buying remaining stake in Cimerwa

PPC to consider buying remaining stake in Cimerwa
26 June 2019

Cimerwa's main shareholder, Pretoria Portland Cement Co (PPC), is considering buying the shares in Cimerwa that are currently held by the Rwandan government and minority shareholders. The government has set a deadline of 5 July for investors to bid for its stake in Cimerwa.

The Rwandan government hold a 16.54 per cent share in the cement producer and PPC owns 51 per cent of the company, while the Rwanda Social Security Board (20.24 per cent), Rwanda Investment Group (11.45 per cent) and Sonarwa Group (0.76 per cent) make up the remaining shareholders. The 49 per cent not owned by PPC is available for sale.

Soraya Hakuzikaremye, Minister of Trade and Industry, explained that the shares will find a new owner, "If they [PPC] are not willing to buy them we intend to look for a private investor to take over the shares."

Bheki Mthembu, PPC Groups CEO, confirmed that PPC is carrying out a share valuation and added, "We see the government focussing on levelling the playing field and opening up the market for more players, hence the need to stay neutral in the cement manufacturing sector – which will encourage more interest in the sector and spur growth."

Published under Cement News