http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.01Change: 0.07
R/$ = 10.61Change: 0.07
Au 1284.62 $/ozChange: 1.82
Pt 1420.00 $/ozChange: 0.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jan 27, 2012

AfriSam restructuring finally cemented

Back
SECURITY|Africa|AfriSam|Bunker Hills|Cement|Holcim|Public Investment Corporation|Security|Africa|South Africa|Bunker Hills|Security|Cement Maker|Security|Bunker Hill|Bunker Hills|Security
SECURITY|Africa|Cement|Security|Africa||Security|Security||Security
security|africa-company|afrisam|bunker-hills-company|cement-company|holcim|public-investment-corporation|security-company|africa|south-africa|bunker-hills-facility|security-facility|cement-maker|security-industry-term|bunker-hill|bunker-hills|security-person
© Reuse this



The Public Investment Corporation (PIC) has reached an agreement with Swiss group Holcim over a restructuring plan for AfriSam to prevent South Africa’s second- biggest cement maker from defaulting on R12-billion in debt repayments due early next month.

The restructuring would “significantly” reduce the risk of default, the PIC said in a statement.

Holcim retained a 15% stake in AfriSam when it facili- tated the creation of the company in 2006 by selling 37% of its South African business to black investors led by Bunker Hills.

Holcim and Bunker Hills initially opposed the PIC’s restructuring plan, which involved the PIC converting its preference shares into equity to reduce AfriSam’s debt by R15-billion, diluting other shareholders’ stakes to a negligible perentage.

The PIC confirmed that it had converted its debt into equity and exercised its rights in terms of the pledge negotiated as security for the original deal, and that it now owned 99% of AfriSam.

The corporation indicated, however, that it intended to hold only about 57% of AfriSam after the restructuring had been completed. Holcim and Bunker Hills would also have an option to increase their position in AfriSam.

“Even though shareholders have not always been in agreement on the technical mechanisms that would form part of the restructuring, we have made significant progress over the last month and have been able to cross the Rubicon, so to speak,” the PIC said.

The deal would reduce AfriSam’s debt to R6.5-billion and would ensure job security for the over 1 800 employees.

“This development allows AfriSam to focus on its opera- tional fundamentals, as well as grow the business, and, most importantly, allows for the protection of the value of the Government Employees Pension Fund investment,” the PIC, which manages about R1-trillion in State pensions, said in a statement.

Holcim said last week that it had written off €343-million of its investment in AfriSam.

Edited by: Martin Zhuwakinyu
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other News This Week News
MODDERFONTEIN NEW CITY Modderfontein New City will aim to exemplify an integrated city node and improve infrastructure utilisation through mixed-use spaces
The multibillion-rand development of the Zendai Modderfontein New City, east of Johannesburg, will aim to exemplify an integrated city node, says property group Zendai South Africa COO Wenhui Du. The development will focus on the Modderfontein Gautrain station to be...
The South African Civil Aviation Authority (CAA) hopes to have finalised regulations for the flying of Unmanned Air Vehicles (UAVs) – also designated Remotely Piloted Air Systems (RPAS) and popularly called drones – in the country’s civilian airspace by the end...
Various stakeholders have expressed optimism that the Small Business Development Ministry, created after the national elections in May, will add much needed impetus to enterprise development in South Africa, where a strengthening of the entrepreneurial culture is...
Article contains comments
More
 
 
Latest News
Construction major Murray & Roberts (M&R) on Wednesday announced a 67% increase in diluted continuing headline earnings a share to 205c for the year ended June, up from the 123c achieved during the prior year. Diluted earnings a share amounted to 305c, up from 245c...
Ebola is causing enormous damage to West African economies, draining budgetary resources and slashing economic growth by up to 4% as foreign businessmen leave and projects are cancelled, the African Development Bank president said. As transport companies suspend...
Low-cost pan-African airline fastjet on Wednesday announced that it had established a company in Kenya, which had already submitted its Air Service Licence (ASL) application to the Kenyan Civil Aviation Authority (KCAA). Fastjet held 49% in the new company, fastjet...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
MODDERFONTEIN NEW CITY Modderfontein New City will aim to exemplify an integrated city node and improve infrastructure utilisation through mixed-use spaces
The multibillion-rand development of the Zendai Modderfontein New City, east of Johannesburg, will aim to exemplify an integrated city node, says property group Zendai South Africa COO Wenhui Du. The development will focus on the Modderfontein Gautrain station to be...
The South African Civil Aviation Authority (CAA) hopes to have finalised regulations for the flying of Unmanned Air Vehicles (UAVs) – also designated Remotely Piloted Air Systems (RPAS) and popularly called drones – in the country’s civilian airspace by the end...
Various stakeholders have expressed optimism that the Small Business Development Ministry, created after the national elections in May, will add much needed impetus to enterprise development in South Africa, where a strengthening of the entrepreneurial culture is...
BOB SCHOLES To ensure that emissions plateau by 2020 and then decline until a net negative emission level is achieved by the end of the century, CO2 capture and storage in addition to major emission reduction efforts will be needed
Capturing and storing carbon dioxide (CO2) is the only way through which the world will achieve the lowest of the United Nations Framework Convention on Climate Change’s (UNFCCC) global warming predictions, called the representative concentration pathway (RCP) 2.6....
PARKS TAU Ongoing investigations had identified at least 30 large power users in Johannesburg as having defrauded the city
The City of Johannesburg has recovered R107-million following the arrest of 22 people allegedly involved in corruption, collusion, fraud and tampering with the city’s electricity systems, which had ultimately cost the city R200-million in lost revenue.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks