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Compact Metal to acquire majority interest in cement plant
COMPACT Metal Industries is intending to buy a 51 per cent stake in a partially completed cement plant in the Republic of Mozambique.
The firm, whose principal activities are in mild steel window fabrication, announced in a Singapore Exchange filing on Wednesday evening that the acquisition is worth more than US$80 million.
Compact Metal plans to acquire the plant through Cement Manufacturing International (Mauritius) (CMI), a vehicle company newly incorporated and registered in Mauritius.
Construction of the cement plant commenced in 2012. Due to a lack of funds, construction has temporarily halted. The plant, which has a production capacity of 5,000 tonnes per day upon operation, has yet to commence commercial operations.
The company will be seeking approval from shareholders for the proposed deal at an extraordinary general meeting to be convened.
The counter closed 0.2 cent higher at S$0.042 on Wednesday.