Johannesburg - South African cement firm PPC Ltd said on Monday it will buy a stake in an Algerian cement company as part of its drive to boost sales outside its home market.
PPC said it will buy a 49 percent stake in Hodna Cement, which plans to construct a $350 million (R3.9 billion) plant in the country.
PPC did not disclose how much the deal will cost but said it will be funded on a project finance basis, with 80 percent of the debt to be sourced from local Algerian banks.
PPC is also constructing cement plants in Ethiopia, Rwanda and the Democratic Republic of Congo.
“This project sees us entering yet another African country and gives us confidence that by 2017, 40 percent of PPC revenues will be earned outside of South Africa,” chief executive Ketso Gordhan said. - Reuters