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Jul 21, 2008:
South African construction material manufacturer AfriSam – formerly Holcim South Africa – on Friday welcomed the Public Investment Corporation (PIC), a representative of the Government Employees Pension Fund (GEPF), as one of its shareholders in the business.
The PIC has committed to invest R6bn in AfriSam, of which R4,3bn is in additional equity securities and R1,7bn is available for future replacement of part of the AfriSam group's current commercial debt facilities.
The BEE transaction between AfriSam and Holcim in respect of the former Holcim South Africa group was concluded on June 30 2007. At the time it was the single largest BEE transaction ever announced, and it remains the largest such transaction yet completed.
AfriSam believes that, with this investment in the business by the PIC, another material step has now been taken in developing AfriSam as a black-controlled industry champion. AfriSam now has a long-term capital structure in place, a new brand reflecting the transformation of the regional group.
Although the residential building market is experiencing a correction due to current economic conditions, increased expenditure on infrastructure and growth in the non-residential building sector will ensure that the construction materials industry will remain robust.
With a significant South African institutional shareholder like the PIC and the ongoing technical support from Holcim Limited, AfriSam said is now well positioned to capitalise on the growth opportunities available in the construction materials industry in southern Africa.
The new ownership structure also far exceeds the Mining Charter's BEE ownership requirements and positions AfriSam favourably to compete with other industry participants. – I-Net Bridge
