No job losses expected at Ohorongo
14 March 2019 | Business
Ohorongo Cement's majority shareholder, Schwenk Zement International GmbH, entered into a conditional agreement to sell a 100% stake in Schwenk Namibia for US$104.4 million.
This equates to approximately N$1.5 billion. Ohorongo Cement MD Hans-Wilhelm Schütte could not guarantee job security after the sale, but said International Cement had indicated that there would be no changes.
“We cannot speak on behalf of the buyer but, based on the press release issued by International Cement, it states that the acquisition will not affect the operational business of Ohorongo Cement and its related companies, nor its business partners,” Schütte said. Schütte had previously told Namibian Sun that the deal was still some way from being approved by the regulatory authorities.
“It is a proposed share transaction.
It still needs to be authorised. Discussions are taking place at holding company level. It will take time before all the necessary approvals are given,” he said.
“It is a key requirement for this transaction to be submitted to and approved by the relevant authorities.
It is the responsibility of the potential buyer, ICG, and the potential seller, Schwenk Zement International GmbH, to obtain this and other relevant approvals,” he added. Ohorongo's current shareholders include the Development Bank of Namibia, the Development Bank of South Africa, the Industrial Development Co-operation South Africa and Schwenk Zement international.