Acquisition of Lafarge South Africa unconditional

Cape Town: The SENS announcement released on 20 June 2023, wherein Afrimat had entered into a share purchase agreement with a Holcim Group subsidiary, Caricement B.V. (“Seller”), in terms of which the Company will acquire 100% of the issued share capital of Lafarge South Africa Holdings Proprietary Limited (“LSA”) and to the update announcement released on SENS on 22 January 2024.

The Company has confirmed that the remaining condition precedent has been fulfilled, specifically:

• The approval of the Competition Authorities in South Africa (the Competition Tribunal approved the implementation of the Acquisition on 10 April 2024).
• The Share Purchase Agreement has become unconditional on 10 April 2024, and the Acquisition will be closed by no later than 24 April 2024.

Rationale and position of this acquisition from Andries van Heerden, CEO of Afrimat: “This exciting deal forms part of the Afrimat Group’s ongoing diversification strategy. It will increase Afrimat’s offering in the construction materials space, by expanding the Group’s quarry and ready-mix operations nationally.

Additionally, access to the fly ash operations provides a foothold into the cement extender market. The grinding plant will allow Afrimat to grind various materials as value-added products for our current and new customers, while the cement kilns allow the Group to enter the cement value chain competitively.

We believe our efficiency drives and breadth of marketing in the construction materials industry will ensure a contribution at an operating profit level, further diversifying the Group’s profitability and ensuring long-term sustainability.”