Swiss-based global building materials group Holcim has signed agreements to divest its businesses in Uganda and Tanzania.
It has agreed to sell Hima Cement Ltd, its local subsidiary in Uganda, to the Sarrai Group, for an enterprise value of USD 120 million.
Holcim has also agreed to sell its 65% participation in Mbeya Cement Company Ltd in Tanzania to Amsons Group for an undisclosed sum.
Completion of both transactions is subject to obtaining the respective regulatory clearances.
Holchim’s Regional Head for Asia, Middle East & Africa, Martin Kriegner, commented: “These divestments advance our strategy to consolidate our leadership in core markets as the global leader in innovative and sustainable building solutions. With the Sarrai Group and Amsons Group, we are pleased to have found strategic and trusted partners who are best positioned to develop these businesses in the long term.”
Lafarge Tanzania has a fully integrated cement plant in the Mbeya area in southwest Tanzania. It produces 0.5 million tons of cement annually.
The current majority stake in the company is held by the Holcim Group, with 65% ownership via its subsidiaries Pan African Cement of Mauritius (51%) and Lafarge Cement Zambia (14%). The Tanzanian government owns 20% and Tanzania’s National Social Security Fund (NSSF) holds the remaining 15% shares in the company.
Earlier this month, the Tanzanian government, in collaboration with the Treasury Registrar and co-shareholders, officially entered into a Memorandum of Understanding (MoU) with Mbeya Cement Company to boost the profitability and management performance of the company.
Under the terms of the agreement, several key changes will be implemented, including a restructuring of the Board of Directors, the government appointing the Board Chairperson, the formulation of a new constitution, and the harmonization of mining licenses.
Mr. Mchechu stressed the government’s intentions to resolve a longstanding land conflict to facilitate cement supply in the southern regions of Kigoma, Katavi, Rukwa, Songwe, Mbeya, Njombe, Ruvuma, as well as neighboring countries such as the Democratic Republic of Congo (DRC) and Zambia.