Dangote invests R779 million in Sephaku Cement Sephaku Holdings Limited (Sephaku) today confirmed the continued unbundling of Sephaku, along with a timetable for the distribution of the company’s mineral rights, other than those related to cement and fluorspar. At the same time, Sephaku has announced details of the investment by Nigerian industrial giant, Dangote Industries Limited (Dangote), of R779 million into Sephaku Cement, a wholly-owned subsidiary of Sephaku.
Commenting on the transactions, Sephaku Holdings CEO, Neil Crafford-Lazarus said; “The investment by Dangote and the unbundling of the non-core assets signals for Sephaku the birth of a recapitalised, financially sound business that will focus on the development of two key and highly sought-after industrial products - cement and fluorspar. With these developments the company has now secured the full equity requirement for the cement project and will be exceptionally well positioned to finalise debt funding terms.”
Dangote Investment Sephaku Cement will issue 217,597,765 ordinary shares to Dangote at an issue price of R3.58 per share. Dangote will accordingly increase its interest in Sephaku Cement from 19.76% (acquired in 2008) to 64%, at an average price of R4.47 per share. The balance will continue to be held by Sephaku. This significant equity investment by Dangote will be used to fund the development of Sephaku Cement’s Aganang and Delmas Projects. The Aganang Project comprises a limestone mine and cement manufacturing plant near Lichtenburg in North West Province and the Delmas Project comprises a cement milling plant in Delmas, in Mpumalanga. These flagship projects will come into production in late 2012 and will yield about 0.90Mtpa and 1.25Mtpa of cement respectively.
Shareholder Approval The transactions are subject to shareholder approval and a shareholders’ meeting has been planned for mid-September, after which the transactions will become effective.
About Sephaku Sephaku Holdings is a HDSA-controlled, South-African focused, industrial minerals exploration and development company, with two key projects in the limestone and fluorspar sectors. The advanced-stage limestone project is being developed through the company’s wholly-owned subsidiary, Sephaku Cement, and production is targeted for early 2012.
The Sephaku Holdings executive team comprises highly respected and experienced individuals with a wealth of financial, legal and technical expertise in all aspects of the mining industry.
Sephaku Holdings is listed on the JSE Limited in the mining sector and trades under the share code SEP.
About Dangote Established in 1981, Dangote Industries of Nigeria is one of the largest manufacturing conglomerates in sub-saharan Africa, with interests in cement, sugar, flour, salt and fish. Dangote is the largest cement producer in Nigeria and will have a cement production capacity of 16 million tons by the first quarter of 2011. Dangote has an aggressive Pan-African strategy to be the largest cement producer in Africa by 2014.
Queries: Nokuthula Nxumalo, Sephaku Holdings + 27 12 686 4837 (tel) + 27 82 954 6644 (mobile)