PPC has acquired 51% equity in cement producer Cimerwa Limited of Rwanda for a total cash consideration of US$69.4 million.
Cimerwa‚ situated in south-western Rwanda‚ has been the only cement producer in the country for the past 28 years‚ PPC said on Wednesday.
It has a current capacity of 100‚000 ton cement per annum and is constructing a 600‚000 ton per annum expansion that will be commissioned during 2014.
In addition to shareholder equity contributions‚ Cimerwa is in the process of finalising US$104m debt financing to complete the expansion project.
PPC CEO Paul Stuiver said the transaction is a further step in PPC’s commitment to invest in sub-Saharan Africa and it is very confident about Rwanda.
“The Cimerwa plant is located in a challenging but very strategic region in east Africa‚ which currently lacks significant cement production capacity‚” he said.
Current demand for cement in Rwanda is estimated at 350‚000 ton per annum. Based on Rwandan and the surrounding region´s positive economic outlook‚ regional cement demand is projected to increase to 1 million ton during the next decade.
Stuiver added; “Combined with our recent investment in Ethiopia‚ the Cimerwa transaction will increase PPC revenue outside of South Africa to more than 30% by 2015/2016.” - I-Net Bridge