The parent company of Twiga Cement plans to acquire a similar company with the name Tanga cement with the sole aim of expanding their market reach in Tanzania and other countries.
In a conversation between the Scancem International DA, the subsidiary of Heidelberg Cement, the parent company of Twiga Cement, they agree on their plans concerning the buyout.
The two companies agree that the Twiga Cement Company will acquire Tanga Cement with a total percentage shareholding of 68.33.
Still, on the conversation between the two owners of the cement companies, they agree that the SH137.33-billion takeover is waiting for approval from relevant regulative sources like Tanzania Fair Competition Commission and the Tanzania Mining Commission.
On the companies’ views, they believe that the purchase price, as they have agreed, will submit to the accustoming that relate to debt, working capital, cost, and other potential adjustments that will come up during the purchase.
Contemplating how the acquisition of the companies will go, they agreed that on the need for acceptance from the shareholders of the Tanga Cement in other to purchase their company.
The Tanga Company believes that the best way to pass this information to the shareholders is by calling a Shareholders meeting in conformity to the regulation of the Shareholders as stipulated.
Among the conditions observed by the companies is getting a tax clearance certificate from the Tanzania Revenue Authority, which will follow the purchase and approval from the Financial Surveillance Department of South African Reserve Bank.
The two companies think that if they can meet all the necessities in line with the agreement, there won’t be more barriers to the acquisition of the Company, and by mid-2022, everything will be ready.
Also, the Cement companies’ have the mindset that, once the acquisition is made, in line with the general principle2 of the company’s regulations, Scancem, the owners of Tanga Cement Company, will make a public offer.
Scancem’s offer will base on the acquisition of the rest of the shares in Tanga Cement company. It will get approval from the Capital Markets and Security Authority of Tanzania.
Again, to make sure that the Shareholders in Tanga Cement Company receive an equal amount of the share paid to AfriSam by Scancem, under the purchase as stated in their regulations, the overall offer will take place last payment from Scancerm to the AfriSam Company.
An advert on the issue states that the two parties are engaging on the regulatory authorities such as the FCC, CMSA, TMC, and the Dar es Salaam Stock exchange concerning the buyout.