CHINESE ACQUIRE OHORONGO CEMENT

The deal has been inked and the
Chinese-owned company, International Cement Group (ICG), has acquired SCHWENK
Namibia’s 69.83% stake in Ohorongo cement.

Ohorongo Cement was until
recently owned by SCHWENK Namibia, Industrial Corporation South Africa (IDC)
14.27% and Development Bank Namibia (DBN) 11.73% and Development Bank of
Southern Africa (DBSA) 4.17%.

Di-Anna Grobler, Development Bank
of Namibia (DBN) spokesperson stated that the bank and its shareholder the
Government of Namibia were not aware of Schwenk International’s intention to sell. 

According to the Singapore Stock Exchange News Service (SENS), the agreed total
price is US104.4 million in cash (approximately N$1.5 billion using a rate of
USD to NAD14.5212 as at 12 March 2019).

The minority owners and shareholders of Ohorongo, were only formally informed
about the transaction at its last Board Meeting held in Windhoek recently. 

Schwenk International announced that they negotiated and signed a Sales
Purchase Agreement (SPA) with International Cement Group (ICG) to sell 100% of
their stake in Schwenk Namibia. 

In terms of the deal, International Cement Group (ICG) will take ownership of
Schwenk Namibia and through its ownership, will own 69.83% of Ohorongo Cement.

The sale of Schwenk Namibia does not reduce the number of shares owned by DBN, DBSA and IDC.