Cement manufacturer, Lafarge Cement Zimbabwe (LACZ) has entered into a binding agreement for the disposal of its 76.45% stake to Fossil Mines Private Limited.
The development follows months of negotiations with different suitors who were bidding to acquire the stake.
In a statement Tuesday, LACZ acting company secretary Arnold Chikazhe informed stakeholders that the development follows a cautionary announcement dated 31 May 2022.
Chikazhe added that Associated International Cement Limited, a member of the Holcim Group, has entered into a binding agreement for the sale of its 76.45% stake in Lafarge Cement Zimbabwe Limited to Fossil Mines (Private) Limited”. He added:
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.
The disposal of Holcim’s Zimbabwean shareholding follows prior disposals of Holcim shareholding in the Northern Ireland, Zambian and Malawian markets amid plans that the group is in the process of disposing of its Indian cement business.
Internal documents seen by NewZimbabwe.com Business suggest that Fossil’s offer is backed by local banks, pension funds and wealth managers.
However, the transaction is still pending due to further due diligence of the asset and regulatory approvals.
Currently, 40% of Zimbabwe’s cement requirements are imported, an opportunity that Fossil wants to capitalize on by providing the market with readily available cement.