West China Cement boosts stake in CILU with USD6m deal

West China Cement Limited (HKEX:2233) announced that its indirect wholly-owned subsidiary, WIH Cement, has entered into an agreement to acquire a further equity interest in Cimenterie de Lukala SA (CILU). WIH Cement will purchase 134,105 shares of CILU, representing 7.75% of its issued share capital, from the International Finance Corporation (IFC) for a consideration of USD6,000,000. This transaction, referred to as the IFC Transaction, is subject to customary closing conditions and adjustments. Following the completion of both the HM SPA and the IFC SPA, CILU is expected to become a non-wholly-owned subsidiary of WIH Cement, with its financial results consolidated into the accounts of the Company. The maximum consideration of the Transactions (HM SPA, IFC SPA and Intra-Group Transfer Agreement) payable by the Group amount to approximately USD120 million. The company stated that the current investment is intended to seize the opportunities in the DRC cement industry. Standard Chartered Bank (Hong Kong) Limited acted as sole financial advisor to the Company in this Transaction.