Pembani secures controlling stake in AfriSam

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South Africa: Pembani Group, an investment holding company, has become the controlling shareholder of South Africa's second-biggest cement producer, AfriSam, by way of a debt restructuring process. Following a debt restructuring process the Government Employees Pension Fund will hold about 57% of the company and Pembani 38%.

"The company's balance sheet was significantly strengthened by an overall debt reduction in excess of US$1.62bn. A consortium of local financial institutions provided the company with a sustainable long-term debt solution," said AfriSam CEO Stephan Olivier.

AfriSam was severely burdened by debt created by a leveraged buyout in 2007. It nearly defaulted on its debts in 2011. In 2012, all the relevant stakeholders agreed to a consensual restructuring of the debt, whereby the government Employees Pension Fund and Pembani Group injected significant equity into the business and Pembani would exercise strategic control over AfriSam's board.

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URL: https://www.globalcement.com/news/item/1563-pembani-secures-controlling-stake-in-afrisam

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