Dangote is reported to be investing R779 million in the South African cement company Sephaku Cement, thereby increasing its stake from 19.8% to 64%. This follows Dangote’s initial R350 million investment and will fully fund the equity requirement for the company’s R3 billion, 2.2 million tpa cement project.
Sephaku Cement will build two new cement facilities, a cement plant at Aganang in North West province, and a cement grinding facility at Delmas, in Mpumalamnga province. Previously, the investment company Sephaku Holdings announced that it had signed a mandate with Nedbank Capital to raise R1.8 billion in debt financing for the cement project.
Dangote will provide the necessary guarantees for the debt financing, fund any project that overruns up to R265 million through a loan on commercial terms, and fund Sephaku Cement’s limestone exploration project in Western Cape and Limpopo province for up to R35 million, also with a loan on commercial terms.
Sephaku Cement’s CEO, Pieter Fourie said that the company could become a significant cement producer with adequate funding now in place and at a time when continuing economic recovery would see a resurgence in construction activity and increasing demand for its cement products locally and in the regional markets.
Read the article online at: https://www.worldcement.com/africa-middle-east/03062010/cash_injection_for_sephaku_cement/