Successful Transactional Advisory for HCS.co » Infra Group
As per the agreement signed between Infra Financials of Infra Group and Habesha Cement SC(HCSCos)on July 1, 2011, of equity and /or debt financing arrangement service.
The Group has delivered its promises and successfully arranged a deal for Habesha Cement SC on one side and two South African companies, Pretoria Portland Cement (PPC) Co Ltd and Industrial Development Corporation (IDC), on the other side to acquire a combined 47pc of shares in Habesha Cement SC (HCSCo) for 21 million dollars.
PPC acquired a 27pc shares for 12 million dollars, while IDC, a development finance institution owned by the government of South Africa, invested nine million dollars for 20pc of the company.
According to Mesfin Abi, CEO of HCSCo Habesha, which has a subscribed capital of 750 million Br, has managed to collect 690 million Br, including about 370 million Br from PPC and IDC. Habesha expects to collect 60 million Br more from local shareholders by December 2012.
Habesha plans to construct a cement plant on 30ha of land in Holeta, 35km, west of Addis Ababa in Oromia Regional State, at a cost of 130 million dollars.
Chinese Northern Heavy Machinery Industries (NHI) Shenyang Co Ltd was then awarded the construction contract for the factory. Habesha has already paid an advance of 7.9 million dollars, 10pc of the contract, to NHI.
The factory is expected to begin production in the early half of 2014 with a capacity of 1.4 million tones of cement per annum.
For more information contact:
Corporate Communication Officer-Infra Group