South Africa-based cement manufacturer PPC has purchased Industrial Development Corporation’s stake in Habesha Cement Share Company (HCSCo), Ethiopia. The acquisition, which represents a purchase consideration of US$13 million, increases PPC’s holding in the company to 51%. The transaction is due to close in December 2014. More than 16 000 local shareholders hold the remaining stake in HCSCo. PPC originally invested US$12 million in a 27% stake in July 2012.
HCSCo has commenced construction of a 1.4 million tpa cement plant some 35 km northwest of Addis Ababa. Commissioning is expected to take place in 2016. The project costs for this plant are approximately US$135 million.
“We are very excited about our increased investment in Ethiopia; a country with a population of 91 million people that is set to reach 100 million by 2018 and having a growth rate that is expected to remain above 8% in the medium-term,” said Bheki Sibiya,
Executive Chairman. “This acquisition will provide further momentum to our growth strategy on the continent. PPC has, in addition to the HCSCo project, signed EPC contracts for projects in Rwanda, the Democratic Republic of the Congo and Zimbabwe; all with construction underway.”
Adapted from press release by Louise Fordham