18 October 2010
Sephaku Holdings Limited (Sephaku Holdings) is pleased to confirm that all necessary resolutions were passed at the general meeting held on Friday 15 October 2010 to approve both the company’s continued unbundling process and the R779 million investment into Sephaku Cement by Dangote Industries Limited (Dangote), as per the company’s announcements on 25 August 2010 and 30 September 2010.
The finalisation of the Dangote transaction places Sephaku Cement, a subsidiary of Sephaku Holdings, firmly on track to develop its Aganang and Delmas projects with sufficient equity funding and the necessary guarantees provided by Dangote to secure the required debt financing.
Sephaku Holdings’ restructuring progressed further with approval obtained for the distribution as a dividend in specie of all the issued ordinary shares in Incubex Minerals Limited (Incubex). Shareholders will receive one Incubex share for every 10 Sephaku Holdings shares held, valued at R0.10 per Sephaku Holdings share.
Commenting on the shareholder approval, Sephaku Holdings CEO, Niel Crafford-Lazarus said: “Our vision for the company has been reinforced by our shareholders and we are excited to move forward on both the cement and fluorspar fronts. Our partnership with Dangote reflects the attractiveness of South Africa to foreign investors and we are firmly committed to bringing a new entrant into the South African cement market for the first time since 1934.”
Dangote investment
Sephaku Cement will issue 217,597,765 ordinary shares to Dangote at an issue price of R3.58 per share. Dangote will accordingly increase its interest in Sephaku Cement from 19.76% (acquired in 2008) to 64%, at an average price of R4.47 per share. The balance will continue to be held by Sephaku Holdings. This significant equity investment by Dangote will be used to fund the development of Sephaku Cement’s Aganang and Delmas Projects. The Aganang Project comprises a limestone mine and cement manufacturing plant near Lichtenburg in North West Province and the Delmas Project comprises a cement milling plant in Delmas, in Mpumalanga. These flagship projects will come into production in late 2012 and will yield approximately 0.9 Million tonnes per annum (Mtpa) and 1.25Mtpa of cement respectively.
About Sephaku Holdings
Sephaku Holdings is a HDSA-controlled, South-African focused, industrial minerals exploration and development company, with two key projects in the limestone and fluorspar sectors. The advanced-stage limestone project is being developed through the company’s wholly-owned subsidiary, Sephaku Cement, and production is targeted for late 2012.
The Sephaku Holdings executive team comprises highly respected and experienced individuals with a wealth of financial, legal and technical expertise in all aspects of the mining industry.
Sephaku Holdings is listed on the JSE Limited in the mining sector and trades under the share code SEP.
About Dangote
Established in 1981, Dangote Industries of Nigeria is one of the largest manufacturing conglomerates in sub-saharan Africa, with interests in cement, sugar, flour, salt and fish. Dangote is the largest cement producer in Nigeria and will have a cement production capacity of 16 million tons by the first quarter of 2011. Dangote has an aggressive Pan African strategy to be the largest cement producer in Africa by 2014.
Queries:
Nokuthula Nxumalo, Sephaku Holdings
+ 27 12 686 4837 (tel)
+ 27 82 954 6644 (mobile)
Monica Musonda, Dangote Industries
+ 234 703 410 4681 (mobile)
Nicola Taylor or Charmane Russell, Russell and Associates
+ 27 11 88- 3924 (tel)
+27 82 927 8957 or + 27 82 372 5816 (mobile)