Dangote Group at the weekend confirmed plans to increase its shareholding in South Africa's Sephaku Cement Limited from 19.8 per cent to 64 per cent.
Aliko Dangote, President and Chief Executive of Dangote Group, said the decision to increase its stake in Sephaku Cement, one of South Africa 's leading cement manufacturing companies, is part of its Sub-Saharan expansion project. The decision, according to a Dangote in a statement, arises from "South Africa being one of the fast-growing economies in Africa and displays strong growth in most economic indices. We need such international expansion to grow at a similar rate or outperform the BRIC nations of Brazil, Russia, India and China. Our aim is to achieve global operational excellence, enlarge our footprints through cross-border acquisitions, build a global brand and in five years, be number one cement company in Africa".
Sephaku Holdings had earlier announced that the decision was reached by both parties, and: "the board is pleased to announce that a heads of agreement has been signed with Dangote in relation to the funding of a Cement Project held by its 80.2 per cent- held subsidiary, Sephaku Cement."
The Agreement further states, "In terms of the Dangote agreement and subject to, inter alia, shareholder approval and the approval of the JSE Limited and any other requisite regulatory bodies, Sephaku Cement will undertake an issue of additional shares to Dangote in order to raise R779 million.