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AEG
AEG
Aveng Limited - Announcement on Holcim Limited BEE Transaction
AVENG LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1944/018119/06)
Share code: AEG
ISIN: ZAE000018081
("Aveng")
AVENG LIMITED ANNOUNCEMENT
Holcim Limited (Switzerland) last night announced a BEE transaction in
Holcim (South Africa) (Proprietary) Limited, a company in which Aveng
Limited has a 45.65 percent interest.
The Press and Media announcement published in Switzerland is set out below.
Holcim signs a conditional agreement to sell its majority stake in Holcim
South Africa to a Black Economic Empowerment Consortium
Since political transformation in 1994, the government of South Africa has
introduced legislation and supported industry self-regulation aimed at
ensuring an equivalent economic transformation, termed Black Economic
Empowerment ("BEE"). Goals of BEE are to bring about a significant
increase in the ownership, management and control of the economy by South
Africans from historically disadvantaged communities. Holcim has been
fully supportive of the process of transformation in South Africa and has
committed itself to ensuring meaningful and sustainable BEE in its South
African Group company.
As a result, Holcim has signed a conditional agreement to sell 85 percent
of its stake in Holcim South Africa to a BEE consortium based on an
enterprise value of ZAR 15.5 billion. Holcim would maintain a 15 percent
share in the newly founded AfriSam, which would hold a 54 percent stake in
Holcim South Africa. Holcim would continue to provide technical
assistance.
AfriSam Consortium is a broad-based BEE company established specifically
for the proposed transaction. Its shareholders will include all employees
of Holcim South Africa as well as a number of charities and broad-based
groups, and will be led by new entrant BEE group Bunker Hills Investments.
Completion of the transaction is subject to inter alia regulatory approvals
and the completion of AfriSam Consortium"s financing process. Holcim
expects to be able to conclude the transaction in 2007, at which time the
South African Group company would be deconsolidated from Holcim. Until
that time Holcim will continue to have control of Holcim South Africa.
For 2005, Holcim South Africa reported an operating profit of approximately
CHF 240 million on sales of CHF 835 million, with a workforce of some
2,000. The company owns two cement plants and a grinding station in South
Africa and has a 62.5 percent interest in Tanzania-based and listed Tanga
Cement Company. The total annual cement capacity is 4.1 million tonnes.
Holcim South Africa is also involved in the aggregates and ready-mix
concrete businesses.
With the proposed transaction, Holcim would not only ensure sustainable BEE
for Holcim South Africa, but also create an excellent platform for further
growth of this company. Holcim firmly believes that this is in the best
interest of the shareholders of Holcim and of Holcim South Africa.
For and on behalf of
Aveng Limited
G J Baxter
Company Secretary
Sponsor: J.P.Morgan Equities Limited
Date: 24/08/2006 11:12:03 AM Produced by the JSE SENS Department
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