PPC executive chairperson Bheki Sibiya
Cement producer PPC on Wednesday said it had successfully acquired the Industrial Development Corporation’s 20% stake in Ethiopia-based Habesha Cement Share Company (HCSCo) for $13-million, increasing PPC’s shareholding in the company to 51%.
PPC pointed out that HCSCo had begun construction on a 1.4-million-tonne-a-year facility, 35 km north-west of Addis Ababa. Project costs for the factory were estimated at $135-million with commissioning expected in 2016.
PPC executive chairperson Bheki Sibiya said the company was excited about its increased investment in Ethopia, which was expected to maintain gross domestic product growth of 8% a year in the medium term.
“This acquisition will provide further momentum to our growth strategy on the continent. PPC has, in addition to the HCSCo project, signed engineering, procurement and construction contracts for projects in Rwanda, the Democratic Republic of Congo and Zimbabwe, all with construction under way,” Sibiya added.
Financial close of the acquisition was expected to take place in December, once all conditions had been satisfied.