Fossil, AICL in crucial Lafarge takeover phase

Lafarge Cement Zimbabwe

ZIMBABWE’S second biggest cement maker says parties to a recently clinched takeover deal were still sifting through crucial paperwork to conclude the transaction.

The deal relates to a move by Fossil Mines (Private) Limited to take over 76,5% shareholding in the business, which went on sale after Associated International Cement Limited (AICL) announced plans to divest from the operation.

“Further to the cautionary announcement dated June 27, 2022, shareholders and members of the investing public are advised that the parties to the sale and purchase agreement for the sale of 76,45% stake in the company are still working towards consummation of the sale and purchase agreement,” Lafarge acting company secretary Arnold Chikazhe said in a cautionary statement yesterday.

“The transaction, if successfully concluded, may have a material effect on the company’s securities. Accordingly, shareholders and members of the investing public are advised to exercise caution when dealing in the company’s securities until a full announcement is made,” he added.

Fossil, a domestic firm that shook the status quo by clinching the takeover deal, escalated its excursion after reducing the transaction to a binding contract in June.

Binding agreements, which are legal contracts, can be enforced under laws, and should there be a dispute related to the fundamentals of a contract, or if there has been a breach of contract, the parties may need to resolve the case in court.

Last month, Lafarge said Fossil would take charge during the fourth quarter (Q4).

In a special note to shareholders prepared to explain the deal during an annual general meeting, the firm maintained that it would be premature to disclose how much Fossil would pay for the deal.

But it said the Zimbabwean outfit trumped stiff competition for the asset based on its current scope of business and demonstrable ability to run a sustainable operation.

“The value of the transaction cannot be disclosed as finalisation of the deal is still ongoing. It is expected to be finalised by Q4, 2022,” Lafarge said.

“Fossil has been identified as the best next owner of Lafarge Cement Zimbabwe, offering an ideal home for our people and our customers to continue to thrive and sharing our deep commitment to sustainability, people and communities given Fossil’s existing business,” it added.

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