Huaxin Cement plans to spend US$160m to purchase cement factories in Zambia and Malawi to expand its presence in Africa, according to a company statement.
Huaxin Hainan Investment wants to buy a 75 per cent stake in Lafarge Zambia from French cement maker Financière Lafarge, which isa major shareholder in Huaxin through its subsidiary Dutch finance firm Holchin, for US$112.5 m, said the Chinese cement company. It will also make compulsory cash offers to public stakeholders to buy up the remaining 25 per cent equity.
Huaxin is also willing to spend US$10m to purchase Pan African Cement from Lafarge Cement Malawi, reports Huaxin Cement Co Ltd. In total, it is prepared to invest US$160m for African expansion.
The deal, which is still subject to approval by authorities, would give Wuhan, central Hubei province-based Huaxin an additional output of 1.75Mta of cement a year in the two countries. It can further increase cement production through the limestone resources the two firms own, it added.
Lusaka-based Lafarge Zambia operates two cement plants with an output of 1.5Mta, it said. Lafarge Cement Malawi has a cement grinding mill with a capacity of 250,000tpa.
