LAFARGE Cement Zimbabwe Limited says its operations would not be disrupted by the imposition of illegal economic sanctions by the US on key persons or companies linked to the majority shareholder, Fossil Mines (Private) Limited.
The US’ Office of Foreign Assets Control (OFAC) recently placed four Zimbabwean individuals and two entities under sanctions but removed 17 people from the Specially Designated Nationals and Blocked (SDN) person list.
The US government claimed the individuals and entities who included Fossil Agro and Fossil Contracting boss, Mr Obey Chimuka, are linked to Sakunda Holdings chief executive officer, Mr Kudakwashe Tagwirei.
In June this year, Fossil Mines entered into a binding agreement to buy 76, 45 percent shares in Lafarge Zimbabwe, which was owned by Holcim Group of Switzerland through its subsidiary, Associated International Cement Limited.
In a statement to shareholders, the cement firm said although the illegal sanctions have impacted some processes within the firm, the company is considering various courses of action with a view to protecting the business and the interests of all stakeholders.
It reassured stakeholders that measures are being taken to ensure that operations continue to run smoothly.
“The board of directors of Lafarge Cement Zimbabwe Limited would like to inform shareholders and all stakeholders of the company that certain persons and companies linked to the majority shareholder Fossil Mines (Private) Limited were placed under targeted economic sanctions by the United States of America’s Office of Foreign Assets Control (OFAC),” said Lafarge.
“These actions have impacted some processes within Lafarge Cement Zimbabwe. Consequently, the company is considering various courses of action with a view to protecting the business and the interests of all stakeholders.
“The company does not anticipate any disruptions in the supply of its much-needed products to the construction and infrastructure sector of Zimbabwe’s economy.”
The Zimbabwe Stock Exchange Limited (ZSE) instituted a unilateral securities halt on the trading of Lafarge shares from 23 December until further notice.
The move is a result of material developments in the sphere of activity of Lafarge following the recent finalization of the agreement to sell 76, 45 percent of its stake.
Prior to the disposal of its 76,45 percent stake, Holcim Group invited interested bidders to submit their expressions of interest to ABSA Corporate and Investment Banking in South Africa, the group’s financial advisors.
After the evaluation of expressions of interest on March 1, this year, Holcim then invited suitable investors to submit binding offers of interest for the acquisition.
Fossil Mines was among the five invited businesses for the acquisition through an auction system.
Fossil’s offer was backed by support from local banks, pension funds, wealth managers, and the company’s financial advisors plus commercial attorneys locally to act on its behalf on the bid.
Meanwhile, the firm has announced the resignation of Ms Gloria Zvaravanhu from the board of directors with effect from 20 December.
Ms Zvaravanhu was appointed to the board of directors on 21 May 2020 and chaired the Audit Committee. – The Chronicle
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