Oliver Kazunga Business Reporter
LAFARGE Zimbabwe, one of the biggest cement and related products producers, has finalised the agreement to sell 76,45 percent of its stake owned by Associated International Cement Limited to local firm, Fossil Mines (Private) Limited.
This is in line with President Mnangagwa’s mantra that “Nyika inovakwa nevene vayo”, a strategic position where indigenous Zimbabweans should lead in taking advantage of the Government’s policies to spearhead national economic development.
Reports say a total of 61 158 400 Lafarge shares changed hands at $312,65 per share in a negotiated trade conducted at the ZSE.
In total, the deal is worth US$29,23 million using the official exchange rate.
In June this year, Fossil Mines (Private) Limited was reported to have entered into a binding agreement to buy 76,45 percent shares in Lafarge Zimbabwe, which is now owned by Holcim Group of Switzerland through its subsidiary, Associated International Cement Limited.
The takeover of Lafarge by Fossil entails that the cement manufacturer would remain a listed business and recapitalised it to increase output by the manufacturing concern.
Holcim has also been reported to be dis-investing from cement around the world, having already sold off its stakes in cement in Northern Ireland, Zambia and Malawi.
In a public notice released today, the Harare-based cement producer, said the sale will be concluded soon upon the transfer of its shares by Associated International Cement (Private) Limited shares in exchange for the consideration agreed by the parties.
“The company wishes to advise shareholders and members of the investing public on the withdrawal of the cautionary announcement dated 18 November 2022, as the sale and purchase agreement for the sale of 76,45 percent stake in the company has been finalised.
“The sale is thus soon to be concluded upon the transfer of the company shares owned by Associated International Cement Limited to Fossil Mines (Private) Limited stake in exchange for the consideration agreed by the parties,” said Lafarge.
“The transaction, if successfully concluded, may have a material effect on the company’s securities.”
Accordingly, shareholders and members of the investing public are being advised to exercise caution when dealing in the company’s securities until a full announcement is made.
Prior to the disposal of its 76,45 percent stake, Holcim Group invited interested bidders to submit their expressions of interest to ABSA Corporate and Investment Banking in South Africa, the group’s financial advisors.
And after the evaluation of expressions of interest on March 1, this year, Holcim then invited suitable investors to submit binding offers of interest for the acquisition.
Fossil Mines was among the five invited businesses for the acquisition through an auction system.
Fossil’s offer was backed by support from local banks, pension funds and wealth managers and the company’s financial advisors and commercial attorneys locally to act on its behalf on the bid.