Cement Plant Acquisitions and Due Diligence
Actis (Africa) Ltd (formerly the Commonwealth Development Corporation)
CCA provided an independent opinion to confirm the attractiveness of the ASEC Cement Company, Egypt, as an acquisition target for major global players and undertook a review of the findings of a technical and environmental due diligence undertaken.
ASEC Cement Company produces grey cement with two dry process kilns having a combined rated capacity of 3.85 million tonnes per year and eight smaller old wet process kilns with a total capacity of 0.49 million tonnes per year. It owns a separate plant producing white cement with a capacity of 300,000 tonnes per year.
CCA’s review provided an independent opinion as to whether the technical and environmental due diligence findings were technically complete and whether any technical risks that may exist had been sufficiently identified. Confirmation of whether the Company can meet compliance with World Bank environmental standards was also provided.
The state of the plants and the installed equipment was assessed and a high level action plan developed to resolve any operational issues identified so that future efforts could be appropriately targeted. The appropriateness of the forecast operating efficiencies and cost assumptions to be adopted were also to be reviewed.
Purchase of Fushe-Kruja Cement Company, Albania
Project leader for Holding Company that successfully bid in international tender to acquire the assets of this cement company under a government privatisation programme. Appraisal, tendering and negotiations were conducted on behalf of the client. The condition of the plant and production equipment was assessed and estimates of investments in machinery and infrastructure determined. An operating concept was developed for both plant and personnel that would enable the company to meet up-to-date standards and efficiencies.
Privatisation of Calabar Cement Company, Nigeria
Participated in the tender for the privatisation of this Federal and State asset on behalf of an international group. The plant condition, its manufacturing costs, the availability of raw materials, the availability of skilled labour were all investigated to enable a value to be established for participation in the sale procedure.
Assessment of Ararat Cement, Armenia
Assessment of this 1.2 million tpa cement company for a contender in the sale of industrial assets by the Armenian Government. The cement plant, its raw materials and the market place was reviewed and put into a commercial context so that a competitive bid could be made.