JSE-listed construction materials company Afrimat on Friday announced that it had made an offer to acquire 50.4% of Infrasors Holdings from Hanchurch Asset Management and a number of retiring Infrasors managers, which had been accepted by the sellers.
The proposed transaction would grant Afrimat control of Infrasors.
Infrasors is a South African resources group, active in the mining and beneficiation of minerals used in the industrial, metallurgical, mining and construction sectors.
Infrasors was initially listed on the AltX market of the JSE in April 2007, but transferred to the main board in February 2010.
Infrasors’ mining interests include the Lyttelton Centurion dolomite mine, the Marble Hall limestone mine, and the Delf alluvial silica sand operation.
Afrimat said the transaction had been unconditionally approved by the Competition Commission on October 24, 2012. The finalisation of the acquisition would be subject to approval by Afrimat's board of directors and the JSE, among others.
Afrimat offered 35 cents a share for Infrasors and would settle the purchase price in cash upon implementation of the transaction.
Afrimat said the acquisition would “complement and augment” its industrial minerals and aggregates product offerings and further expand its geographical footprint across South Africa. It would especially grow its foothold in the industrial minerals and aggregates markets in the northern provinces, negating the need to create more capacity to service these markets.
The company said its intention was to take control of the Infrasors board and to implement its management practices and business processes throughout the group.