PPC concludes 51% CIMERWA stake disposal

PPC has concluded the sale of its 51 per cent stake in CIMERWA, Rwanda. The South Africa-based cement producer sold its shareholding for US$42.5m to National Cement Holding Ltd. The sale enables PPC to focus on its core domestic market, where it sees opportunities to improve profitability and secure a more sustainable return on capital, reports The Chronicle.

In a notice to shareholders, PPC Chief Executive Officer, Matias Cardarelli, said: "I am pleased with the timely completion of the sale of our stake in CIMERWA. CIMERWA is now part of a regional group that is better placed to support its growth.

"The disposal allows us to focus on our core southern African markets where we see opportunities to drive improved profitability and secure a more sustainable return on capital."

All conditions precedent to the disposal have been fulfilled and the proceeds received. Approval by the Common Market for Eastern and Southern Africa (COMESA) Competition Commission, which is not required before implementation of the disposal, is anticipated to be received within 120 days.

"Consequently, the effective date of the disposal is 25 January 2024. The PPC Group is net cash positive following receipt of the proceeds of the disposal," added Mr Cardarelli.