PPC Announces The Disposal Of Its 51% Interest In Cimerwa (Rwanda)
PPC Announces The Disposal Of Its 51% Interest In Cimerwa (Rwanda). PPC shareholders are advised that the company’s wholly-owned subsidiary, PPC International Holdings Proprietary Limited, concluded an agreement on 17 November 2023 to dispose of its entire shareholding in CIMERWA PLC to National Cement Holding Limited, for a cash consideration of US$42.5million.
CIMERWA is a Rwandan-based integrated cement manufacturer in which PPC has held a 51% interest since 2013. The remaining 49% is held by minority shareholders, and this 49% is listed on the Rwanda Stock Exchange. The Purchaser is a privately-owned company and is part of the Devki group that is one of the largest manufacturers of clinker and cement in East Africa, with operations in Kenya and Uganda.
The Disposal is pursuant to the company’s revised strategy to focus on its core Southern African markets and results in PPC exiting the last of its Central and East African assets. PPC believes that the disposal enables the entry of a new long-term strategic investor in CIMERWA that has the required financial and technical resources to continue to support and execute CIMERWA’s strategy, which is in line with the purchaser’s strategy to be an expanding regional cement producer. The use of the disposal consideration will be considered by PPC in terms of its capital allocation model and its optimal gearing levels.
PPC Ltd, is a supplier of cement, lime and related products in southern Africa. It has 11 cement factories and a lime manufacturing facility in six African countries including South Africa, Botswana, Democratic Republic of the Congo, Ethiopia, Rwanda and Zimbabwe. The company is headquartered in Sandton. PPC Limited is committed to providing integrated engineering solutions that meet and exceed customer expectations while conforming to all applicable industry.
