The acquisition was disclosed on the evening of Tuesday, July 23, 2024, though details about the deal are still scanty. IGIHE has learnt that deal was finalized on July 18, 2024.
In a brief interview, Mahmoud Nasr, the CEO of Prime Cement, confirmed the development. Asked what could have triggered the deal, Mahmoud declined to divulge more details.
'It is the responsibility of the government. You should be asking them why the takeover happened,' he said before hanging up.
The CEO of the Rwanda Stock Exchange (RSE), Pierre Celestin Rwabukumba, also confirmed that CIMERWA had informed them about the acquisition last week.
"They informed us last week, and the process is ongoing. This acquisition has significant implications for CIMERWA and its shareholders. Prime Cement was a major competitor in the market. When you acquire a competitor, you are essentially taking over the market. National Cement Holdings Ltd, which acquired CIMERWA, aims to lead the market wherever they operate by reducing the importation of cement into the country," he stated.
The amount CIMERWA paid to acquire Prime Cement has not been disclosed yet. This move follows CIMERWA's acquisition by National Cement Holdings Limited, which owns cement manufacturing plants across Africa.
In November 2023, CIMERWA's management announced that the company had been acquired by National Cement Holdings Limited after it secured 99.94% of its shares.
By January 2024, National Cement Holdings Ltd's management announced they had completed the payment for the 99.94% shares in CIMERWA, amounting to $85 million, equivalent to Rwf107,963,175,000.
They committed to satisfying the cement demand in Rwanda by eliminating the need for imports thereby ensuring affordable prices to Rwandans.
CIMERWA, established in 1984, became the first cement factory in Rwanda. Its cement has been used in major projects such as BK Arena, Bugesera International Airport, Amahoro Stadium, various roads, and over 2000 classrooms.
Prime Cement, the newly acquired factory, had a capacity of processing 600,000 tons of cement per year.
CIMERWA earlier announced through local media outlets that the acquisition of Prime Cement's assets was an "off-market transaction."
'CIMERWA Plc will take over all operational assets of Prime Cement, with the government retaining any outstanding liabilities. The company believes this acquisition will significantly boost its capabilities and market position,' reads a statement.
IGIHE
Source : https://en.igihe.com/news/article/cimerwa-completes-acquisition-of-prime-cement
