PPC has increased its shareholding in Ethiopian producer Habesha Cement Share Company to 51 per cent by acquiring the Industrial Development Corporation's (IDC) 20 per cent stake in the company for US$13m.
In July 2012, PPC jointly acquired a 47 per cent stake in the Habesha Cement for US$21m, with PPC investing US$12m cash to obtain a 27 per cent stake in Habesha Cement and the IDC simultaneously investing US$9m for a 20 per cent equity stake. The balance of the shareholding is held by more than 16,000 local shareholders.
The financial close of PPC's acquisition of the IDC's shareholding is expected next month once all the conditions have been satisfied.
Bheki Sibiya, the executive chairman of PPC, said yesterday that this acquisition would provide further momentum to the company's growth strategy on the continent.
PPC's strategy is to generate 40 per cent of its total revenue from outside South Africa by 2017, compared with 26 per cent presently.
