Chronicle Editor
Senior Business Reporter
ASSOCIATION International Cement Limited, a member of the Holcim Group, has entered into a binding agreement for the sale of its 76,45 percent stake in Lafarge Cement Zimbabwe Limited to Fossil Mines (Pvt) Limited.
Lafarge Zimbabwe is one of the country’s biggest cement companies, and has been increasing investment to take advantage of rising cement demand.
Last month, the cement manufacturer announced to shareholders that Associated International Cement has received offers for its 76,45 percent stake and is assessing offers.
On Monday, through a cautionary note, it said a binding agreement with Fossil Mines (Pvt) Limited has been entered to.
“Further to the cautionary announcement dated 31 May 2022, shareholders and members of the investing public are advised that Associated International Cement Limited, a member of the Holcim Group, has entered into a binding agreement for the sale of its 76,45 percent stake in Lafarge Cement Zimbabwe Limited to Fossil Mines (Pvt) Limited,” reads part of the statement.
“The transaction, if successfully concluded, may have a material effect on the company’s securities.
“Accordingly, shareholders and members of the investing public are advised to exercise caution when dealing in the company’s securities until a full announcement is made.”
In March, another cautionary statement was issued by the Zimbabwe Stock Exchange-listed firm saying “a significant shareholder in the company is involved in discussions regarding its stake in the company”.
“Such transaction, if successfully concluded, may have an effect on the company’s securities,” read the statement in part.
On the 20th of April, a further cautionary statement was released saying AICL had rejected an offer for its 76,45 percent stake in the company and was still assessing the offers received for its stake in the firm.
In its first-quarter trading update, the cement manufacturer said it is repositioning itself for growth following the complete restoration of the collapsed cement mill roof and the business now expects to tap into the on-going Government infrastructure projects.
Last year, the company suffered a critical on-site incident involving the collapse of the roof over one of its major cement mills located in Harare.
This negatively affected production resulting in cement volume decline of 55 percent versus the same period last year.
The temporary stoppage in production resulted in a backlog of pre-paid orders that needed to be satisfied before the resumption of normal market supplies.
Online Reporter