JOHANNESBURG – PPC Restricted has accomplished the sale of its 51% stake in Rwandan cement producer Cimerwa to Nationwide Cement Holding Restricted for a money consideration of US$42.5 million. The transaction is a crucial step in PPC’s strategic transformation to give attention to Southern Africa operations and improve monetary leverage.

The switch of shares will happen seven working days after the mandatory situations are met, together with objections to the OTC sale settlement by the Widespread Marketplace for Jap and Southern Africa (COMESA), the Rwanda Income Authority, Cimerwa Financial institution Companions and non-Rwandan inventory exchanges.

Cimerwa reported a internet asset worth of R1.2 billion and internet revenue after tax of R237 million for the yr ended 31 March 2023, making it a worthwhile enterprise for PPC with a e-book worth of $38.5 million. The transaction is supported by a company assure from Nationwide Cement Restricted throughout the Devki Group and contains customary ensures.

The sale is per PPC’s capital allocation priorities emphasizing maximizing shareholder returns. The deal is assessed as a Class 2 transaction underneath JSE itemizing necessities, that means it doesn’t require shareholder approval however will impression PPC’s capital administration technique.

Devki Group, the dad or mum firm of Nationwide Cement, will now lead Cimerwa’s development plans in Rwanda and East Africa, with a selected give attention to supporting infrastructure growth. Regis (NYSE:) Rugemanshuro of Cimerwa expressed gratitude for PPC’s previous contributions and expressed optimism for the long run underneath new possession. Dr. Narendra Raval of Devki Group reiterated their dedication to contribute to the financial growth of the area via this acquisition.

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