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AFRIMAT LIMITED - Acquisition of Lafarge South Africa unconditional

Release Date: 10/04/2024 16:30
Code(s): AFT     PDF:  
Wrap Text
Acquisition of Lafarge South Africa unconditional

Incorporated in the Republic of South Africa
(Registration number: 2006/022534/06)
Share code: AFT
ISIN: ZAE000086302
("Afrimat" or "the Company")


Shareholders are referred to the SENS announcement released on 20 June 2023, wherein
the Company advised that it had entered into a share purchase agreement ("Share Purchase
Agreement") with a Holcim Group subsidiary, Caricement B.V. ("Seller"), in terms of which
the Company will acquire 100% of the issued share capital of Lafarge South Africa Holdings
Proprietary Limited ("LSA") held by the Seller and, as a consequence, all of LSA's subsidiaries
("Acquisition") and to the update announcement released on SENS on 22 January 2024.

The Company is pleased to confirm that the remaining condition precedent has been fulfilled,

      -   the approval of the Competition Authorities in South Africa (the Competition Tribunal
          approved the implementation of the Acquisition today, 10 April 2024).

Shareholders are accordingly advised that the Share Purchase Agreement has become
unconditional on 10 April 2024, and the Acquisition will be closed by no later than 24 April
2024. The Company looks forward to the exciting opportunities and implementation that lies

Rationale and position of this acquisition from Andries van Heerden, CEO of Afrimat:

"This exciting deal forms part of the Afrimat Group's ongoing diversification strategy. It will
increase Afrimat's offering in the construction materials space, by expanding the Group's
quarry and ready-mix operations nationally.

Additionally, access to the fly ash operations provides a foothold into the cement extender
market. The grinding plant will allow Afrimat to grind various materials as value-added
products for our current and new customers, while the cement kilns allow the Group to enter
the cement value chain competitively.

We believe our efficiency drives and breadth of marketing in the construction materials
industry will ensure a contribution at an operating profit level, further diversifying the Group's
profitability and ensuring long-term sustainability.

We have appointed our Chief Financial Officer, Pieter de Wit, as the full-time Integration
Manager for this process, and he will, together with experienced leadership and the integration
team, focus on ensuring this process is as transparent and uncomplicated as possible. We will
ensure that we utilise the skills within both Afrimat and Lafarge SA during the integration
process to optimise efficiencies, productivity, and profitability.

The time is perfect for Afrimat to return to its roots of quarrying and aggerates to support long-
term diversified sustainability across the Group."

Cape Town
10 April 2024

Sponsor and corporate advisor
Valeo Capital (Pty) Limited

Date: 10-04-2024 04:30:00
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