Reunert buys Zambian cable manufacturer
Monday, 5 September 2016
Reunert is pleased to announce that the acquisition of a 75,39% shareholding in Metal Fabricators of Zambia PLC ("Zamefa") from General Cable Corporation (NYSE: BGC) for US$9.9 million has been concluded. Zamefa has been incorporated into Reunert's electrical engineering segment with effect from 26 August 2016.
Zamefa will remain listed on the Lusaka Securities Exchange and a mandatory offer to minority shareholders of Zamefa will be undertaken within 180 days post-closing of the acquisition.
Zamefa is a leading wire and cable manufacturer in Zambia with a broad product portfolio. Its manufacturing facility is located in Luanshya on the Zambian copper belt near to major copper cathode suppliers.
The acquisition is in line with Reunert´s stated acquisition philosophy which supports bolt-on acquisitions. The electrical engineering group will be able to leverage off its South African, Zambian and Zimbabwean cable operations, capitalising on future electricity infrastructure growth expected in Africa. These growth expectations stem from consumer electrification and industrialisation growth, projected GDP growth for the continent and the number of planned generation projects in the African development pipeline. In addition, the acquisition of Zamefa will create a number of operational efficiencies which will enhance value for the Reunert group as a whole.