Sephaku Holdings Limited (SepHold; JSE: SEP) has announced conclusion of an agreement to acquire the entire issued share capital of Métier Mixed Concrete (Pty) Limited (Métier Mixed Concrete) for R365 million.
Métier Mixed Concrete is a supplier of ready-mixed concrete products, ranging from standard concrete to grouts, mortars, fibre-reinforced concrete and polished concrete, to coloured concrete. The company has a full-service technical division, provides a concrete-pumping service, and has capacity to supply specialised concrete to the higher end of the market.
SepHold Chief Executive Officer Lelau Mohuba said: “This acquisition is both a valuable and logical addition to the SepHold asset base. Together with our 36% holding in South Africa cement manufacturer, Sephaku Cement (Pty) Limited, Métier Mixed Concrete constitutes a very significant link in our developing African infrastructure and construction value chain.”
Sephaku Cement is currently developing a cement production facility at Aganang, near Lichtenburg in the South Africa’s North West Province, which will have an estimated annual production capacity of approximately 1.2 million tons a year.
In addition, it is developing a grinding facility at Delmas in South Africa’s Mpumalanga province, with an estimated annual production capacity of 1.4 million tons of cement.
The Métier purchase consideration will be settled in in two tranches, through a combination of cash payments and shares in SepHold.
The acquisition is subject to approval by SepHold’s shareholders.
James Duncan, Russell & Associates
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