Lafarge takeover sealed

FOSSIL Mines yesterday official took control of Lafarge Cement after acquiring a 76,45% controlling stake in the Zimbabwe Stock Exchange (ZSE) listed firm.

The shareholding was previously held by Associated International Cement, a member of the Swiss-headquartered, Holcim group in a sell-off of the cement giant’s assets which is part of its global consolidation strategy.

Fossil Mines is a local resource company led by businessman Obey Chimuka.

Fossil Group CEO Obey Chimuka and John Stull at the handover takeover yesterday.

Fossil was the successful bidder after the Switzerland headquartered multinational utility company early this year announced its sale of the 76.45% stake.

In a statement released by Lafarge Cement’s acting company secretary, Arnold Chikazhe said the two parties are now waiting for the transfer of shares to Fossil Mines to effectively put a seal to the transaction that will seal locals firmly in control of the strategic company.

“Further to the cautionary announcement dated 18 October 2022, shareholders and members of the investing public are advised that the sale and purchase agreement for the sale of 76.45% stake in the Company has been finalized,” Chikazhe said.

“The sale is thus soon to be concluded upon the transfer of the Company shares owned by Associated International Cement Limited to Fossil Mines (Private) Limited stake in exchange for the consideration agreed by the parties.”

This comes as Lafarge expects production to double this last quarter of the year as the cement manufacturer ties up its US$25 million capital expansion programme that commenced two years ago.

Following the successful installation of alternative power infrastructure in 2020 and the successful completion of the automated dry mortars (DMO) plant in 2021, the new vertical cement mill (VCM) commissioning started in Q2 2022.

“The company is hopeful that continued collaborative dialogue between government and industry will continue to safeguard business confidence, preserve value and macro-economic stability,”
Additionally, the company has also commenced the refurbishment of silos to increase storage capacity of cement and to end dispatch bottlenecks.

In a statement accompanying half-year results to June 30, 2022, Lafarge chairman Kumbirai Katsande said these investments are expected to raise the company’s cement production capacity significantly.

“The commissioning process of the new VCM started in Q2 2022. The company will essentially double its production capacity and improve raw material availability to the new DMO plant. Launching the new VCM will reposition the company on a growth path into the future. This will positively affect the company’s revenue generation and profitability.

“Binastore and aggregates as with dry motors, are anticipated to post good growth in H2. The overall market demand continues to grow driven by the individual home builders’ segment as well as ongoing major government infrastructure development projects.

“The company is hopeful that continued collaborative dialogue between government and industry will continue to safeguard business confidence, preserve value and macro-economic stability,” he said.