Ohorongo for sale
Singaporean company International Cement is in talks to acquire 100% of the share capital of Schwenk Namibia, the majority shareholder in Ohorongo Cement, in a deal worth US$226.9 million.
International Cement Group says it has entered into a conditional sale and purchase agreement to acquire a 100% stake in Schwenk Namibia for US$246.29 million, Singapore-based Strait Times reported.
This equates to approximately N$3.5 billion.
The company intends to fund the proposed acquisition through third-party financing or borrowing, it said.
Schwenk Namibia currently owns a 69.83% stake in Ohorongo Cement. Ohorongo Cement was until recently the only cement factory in Namibia.
Ohorongo MD Hans-Wilhelm Schütte confirmed the news.
“It is a proposed share transaction. It still needs to be authorised. Discussions are taking place at holding company level. It will take time before all the necessary approvals are given,” he said.
Ohorongo's current shareholders include the Development Bank of Namibia, the Development Bank of South Africa, the Industrial Development Co-operation South Africa and Schwenk Zement KG.
Ohorongo commenced production in December 2010 and has a current production capacity in excess of a million tonnes of high-quality cement annually, for both local consumption and special projects.
All raw materials required for the production process are sourced in Namibia and the entire value chain takes place locally.
Notable projects completed using cement produced by Ohorongo include the Neckartal Dam in the /Karas Region, the fuel storage facility in Walvis Bay and the St Helena airport.
International Cement noted that following its successful diversification into the cement business in Central Asia in 2017, the group has decided to expand its cement business into Africa.
As compared to building a new cement plant, having a commercially operational plant would eliminate project risk during the construction period, Strait Times reported.
The group is of the view that the proposed acquisition presents an attractive opportunity for it to seize growing business opportunities in Africa arising from the construction of infrastructure there, and/or generated from China's Belt and Road initiative, it added.
Staff reporter
International Cement Group says it has entered into a conditional sale and purchase agreement to acquire a 100% stake in Schwenk Namibia for US$246.29 million, Singapore-based Strait Times reported.
This equates to approximately N$3.5 billion.
The company intends to fund the proposed acquisition through third-party financing or borrowing, it said.
Schwenk Namibia currently owns a 69.83% stake in Ohorongo Cement. Ohorongo Cement was until recently the only cement factory in Namibia.
Ohorongo MD Hans-Wilhelm Schütte confirmed the news.
“It is a proposed share transaction. It still needs to be authorised. Discussions are taking place at holding company level. It will take time before all the necessary approvals are given,” he said.
Ohorongo's current shareholders include the Development Bank of Namibia, the Development Bank of South Africa, the Industrial Development Co-operation South Africa and Schwenk Zement KG.
Ohorongo commenced production in December 2010 and has a current production capacity in excess of a million tonnes of high-quality cement annually, for both local consumption and special projects.
All raw materials required for the production process are sourced in Namibia and the entire value chain takes place locally.
Notable projects completed using cement produced by Ohorongo include the Neckartal Dam in the /Karas Region, the fuel storage facility in Walvis Bay and the St Helena airport.
International Cement noted that following its successful diversification into the cement business in Central Asia in 2017, the group has decided to expand its cement business into Africa.
As compared to building a new cement plant, having a commercially operational plant would eliminate project risk during the construction period, Strait Times reported.
The group is of the view that the proposed acquisition presents an attractive opportunity for it to seize growing business opportunities in Africa arising from the construction of infrastructure there, and/or generated from China's Belt and Road initiative, it added.
Staff reporter
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