Libya Holdings Group (LHG) is to acquire a majority stake in Libyan Cement Co. (LCC) by 30 April 2015. The LHG sponsored vehicle will acquire a controlling interest in LCC from QuadraCir Group (QuadraCir).
LHG will fund the transaction using its existing cash resources, with some of the leading families and industrial companies in the GCC region as co-investors. LHG intends to retain LCC’s existing management team, alongside Asamer’s technical knowhow, to ensure operational continuity.
Long-term, LHG aims to continue to invest in modernising the factories and empowering a new generation of Libyans to develop the technical expertise and intellectual property for the ongoing development of the company.
Under the terms of the acquisition, LHG and its co-investors will invest tens of millions of US dollars to finance LCC’s capital expenditure plan designed to stabilise operations and increase the production capacity to over 3 million tpa, ensuring LCC is able to meet the growing demand for cement in eastern Libya.
Commenting on the acquisition, Ahmed Ben Halim, Founder and CEO of LHG, said: “We are very pleased to have been able to execute this transaction in a complex environment, retaining operational continuity for the cement company and at the same time securing its long-term growth potential which will benefit the Libyan economy.”
“This acquisition demonstrates investor confidence in the growth capacity of the country, and will further LHG’s strategy of becoming Libya's leading industrial group active in the energy, infrastructure and finance sectors.”
Robert Solomon, CEO of LCC, stated: “We believe that this investment will be extremely positive for our customers, employees and partners. LHG’s commitment to the operational continuity provides stability for the company, while its commitment to growing capacity makes it an ideal long-term partner for the development of the country’s industrial capabilities.”
Adapted from press release by Joseph Green
Read the article online at: https://www.worldcement.com/africa-middle-east/28042015/libya-holdings-group-set-to-acquire-libyan-cement-company-756/