The Sunday News
Judith Phiri, Business Reporter
CEMENT manufacturer, Lafarge Cement Zimbabwe Limited has announced that an investor has placed an offer for 76.45 percent of the company’s shareholding.
Lafarge Cement Zimbabwe is a unit of Holcim Limited, a French company that is looking to sell its Zimbabwe unit, as it continues to sell-off assets globally.
In a statement, Lafarge Cement Zimbabwe company secretary, Ms Faithful Sithole said: “Further to the cautionary announcement dated 8 March 2022, shareholders and members of the investing public are advised that Associated International Cement Limited has received certain offers for its 76.45 percent stake in the Company. The transaction, if successfully concluded, may have a material effect on the Company’s securities.”
Ms Sithole said accordingly, shareholders and members of the investing public were advised to exercise caution when dealing in the Company’s securities until a full announcement is made.
Meanwhile, the company recently announced board changes, amid rumours of expected sale of the company to a Chinese investor. Lafarge Cement Zimbabwe earlier this month announced the resignation of one of its longest serving board members, Mr David Leslie Cruttenden who was replaced by veteran corporate governance practitioner Mr Shepherd Shonhiwa who was appointed to the board with effect from January 1, 2022.
A Holcim spokesman told Bloomberg in February: “We are constantly evaluating possibilities to align our portfolio with this vision to open new growth opportunities for our company.”
Though he would not comment on “market rumours” that the Zimbabwe unit may be among the units being sold off.
Lafarge Cement Zimbabwe is one of the country’s biggest cement companies, and has been increasing investment to take advantage of rising cement demand. But it could become part of Holcim’s global consolidation strategy.
Rumours say the likely buyer is Huaxin Cement, one of China’s biggest cement companies. Huaxin bought Lafarge Zambia and Lafarge Cement Malawi late last year.
In June, Huaxin bought 75 percent of Lafarge Zambia for US$150 million and spent US$10 million to buy Pan African Cement from Lafarge Cement Malawi. In 2020, Huaxin bought Tanzania’s Marvini Limestone for US$145 million, its first investment in Africa.
Last year, Holcim sold part of its Ghana business and disposed of its Brazil unit for US$1 billion.
