LAFARGE Zambia Plc has changed its name and reverted back to ‘Chilanga Cement Plc’ following a Share Sale and Purchase Agreement signed and executed with Huaxin (Hainan) Investment Limited, the Chinese cement manufacturer, who now hold a controlling majority stake.
Lafarge had been heavily fined by the Zambian anti-trust watchdog – CCPC and had appealed the decision. CCPC is yet to confirm if the company that takes over will also inherit the fines or if Lafarge has indeed entered into any settlement agreement.
On June 11, 2021, Lafarge Zambia Plc announced that Huaxin (Hainan) Investment Co., Limited, had entered into a Share Sale and Purchase Agreement with Pan African Cement Limited and Financier Lafarge SAS, in respect of the sale and purchase of their 50.1 per cent and 24.9 per cent, respectively, of the issued share capital of Lafarge Zambia Plc.
And in a further cautionary announcement on November 10, 2021, shareholders were advised that all the relevant approvals had been obtained and the conclusion of the transaction was now underway in line with regulatory requirements.
According to an updated circular seen by the Zambian Business Times– ZBT, the share sale from Lafarge to Huaxin (Hainan) Investment Co., Limited is now completed, and that name change back to Chilanga Cement Plc confirmed.
“Following approval of the Sale by the regulatory authorities and satisfaction of all conditions precedent, shareholders were advised via an announcement on November 10, 2021, that the conclusion of the transaction is now underway in line with regulatory requirements. Following the completion of the signing of the sale and purchase agreement and obtaining all relevant approvals, Lafarge Zambia Plc now proposes to change the name of the company from Lafarge Zambia Plc to Chilanga Cement Plc, in line with impending majority control in the company and consistent with the complete exit of Financière Lafarge SAS and Pan African Cement Limited representing the Lafarge Holcim Group, the majority shareholders in the company,” read the circular.
Huaxin is a wholly-owned subsidiary of Huaxin Cement Co. Limited, an entity listed on the Shanghai Stock Exchange in China. As of December 31, 2020, Huaxin Cement is present in 13 provinces of China and six countries abroad with almost 250 subsidiaries and branches.
The total asset value of Huaxin Cement amounts to approximately US $6.6 billion, with sales of approximately US $4.4 billion and around 16,860 employees globally. The Cement company is a leading player in the manufacturing and marketing of cement products in China.
Founded in 1907, Huaxin Cement today has a cement production capacity of 115 million tonnes per year, aggregate production capacity of 55 million tonnes per year and a ready-mix concrete capacity of up to 27 million cubic meters/year.
Huaxin Cement is ranked in China’s top 500 manufacturing companies and is also listed as a Fortune China 500 company.
