Namibia's Ohorongo Cement is set to be acquired by West China Cement for US$104m, following an agreement made on 3 January. The takeover is expected to completed soon but is subject to Namibian regulatory approval.
Negotiations reportedly began last year when the owners of Ohorongo Cement announced plans to sell its mine which has over 80 per cent of the site’s raw materials.
The sale and purchase agreement is subject to certain conditions which must be satisfied by 31 March 2020 in order for the deal to be concluded.
Ohorongo Cement, which operates a 0.7Mt integrated plant at Otavi, is majority owned by Germany’s Schwenk Zement, with minority stakes held by the Development Bank of Namibia, South Africa's Industrial Development Cooperation and the Development Bank of Southern Africa.
West China Cement
West China Cement Ltd, headquartered in Xi’an, Shaanxi Province, China, generated revenues of CNY5911.7m (US$847.63m), while EBITDA was reported at CNY2637m, representing an elevated EBITDA margin of 44.6 per cent.
The company operates 29.2Mt capacity from 17 integrated cement plants serving the North Western China provinces of Shaanxi, Xinjiang and Guizhou. Sales of cement and clinker in 2018 amounted to 18.2Mt.
Conch International Holdings (HK) Limited, a wholly-owned subsidiary of Anhui Conch Cement Co., Ltd, had 1,147,565,970 shares in the company, representing approximately 21.11 per cent of the company's issued share capital as at 31 December 2018.
