Fossil Mines, a consortium of entrepreneurs led by Obey Chimuka is now the majority shareholder in Lafarge Cement Zimbabwe after completing the purchase of a 76.45% stake held by Lafarge Holcim's subsidiary Associated International Cement.
Fossil settled the purchase price of Lafarge Cement on Friday in a development that placed the giant cement producer in the hands of local entrepreneurs.
Fossil was the successful bidder after the Switzerland headquartered multinational utility company early this year announced its sale of a 76.45% stake.
Lafarge Cement’s acting company secretary Arnold Chikazhe said the two parties were now waiting for the transfer of shares to Fossil Mines to effectively put a seal to the transaction that will seal locals firmly in control of the strategic company.
“Further to the cautionary announcement dated 18 October 2022, shareholders and members of the investing public are advised that the sale and purchase agreement for the sale of 76.45% stake in the company has been finalized,” Chikazhe said.
Fossil Group chief executive officer Obey Chimuka and Larfarge Holcim director John Stull at the handover takeover ceremony on Friday. Stull has been a non-executive director at Lafarge Cement Zimbabwe (since June 2021). He worked as the chief executive officer of Holcim Philippines from 2018 until 2021. Stull is currently the area manager - East, South Africa for Holcim. He has over 30 years’ experience with Holcim Group having joined it in 1992 as the operations manager at the Alpena plant in Michigan, US. Since then he has worked in a variety of executive roles around the world. Stull holds a Bachelor of Science Degree in Chemical Engineering from the University of Akron and an Advanced Management Degree from Harvard University.
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“The sale is thus soon to be concluded upon the transfer of the Company shares owned by Associated International Cement Limited to Fossil Mines (Private) Limited stake in exchange for the consideration agreed by the parties.”
He added: “The transaction if successfully concluded, may have a material effect on the company's securities.
Accordingly, shareholders and members of the investing public are advised to exercise caution when dealing in the company's securities until a full announcement is made.”
In June, Fossil was among five bidders vying to snap up Lafarge Zimbabwe.
Other pre-qualified bidders who tabled takeover offers were three Chinese firms, including cement giant, Huaxin Cement, and one African billionaire.