SINGAPORE: International Cement Group has announced its intention to acquire a 100% equity interest of SCHWENK Namibia (Pty) Ltd, which is incorporated in Namibia.
[the_ad id=”32940″]In connection with the proposed acquisition, the International Cement Group has entered into a conditional sale and purchase agreement dated March 08, 2019 with SCHWENK Zement International for the sale and purchase of 1.53 million cumulative redeemable preference shares and 100 ordinary shares representing the entire issued and paid up capital of SCHWENK Zement International.
The Vendor’s holding company, SCHWENK Zement, is an established producer of construction materials, including cement.
SCHWENK Zement is a private company incorporated in Namibia and is wholly owned by the Vendor. SCHWENK Zement has a 69.83% equity interest in Ohorongo Cement (Pty) Limited, which is incorporated in Namibia. SCHWENK Zement also owns 100% equity interest in Energy For Future (Pty) Limited (EFF), a company incorporated in Namibia.
Under the agreement, the aggregate purchase consideration payable for all the sale shares (after adjustments) is $19.341 million. The share purchase Price will be payable in cash by the Company to the Vendor on completion.
On completion of the proposed acquisition, International Cement Group shall hold a 100% equity interest in SCHWENK, which directly holds a 69.83% equity interest in Ohorongo Cement and a 100% equity interest in EFF.
The Company will be seeking specific approval from shareholders of the company at an extraordinary general meeting of the company to be convened to approve the proposed acquisition.