(Yicai Global) June 11 -- Huaxin Cement plans to spend USD160 million to purchase cement factories in Zambia and Malawi to expand its presence in Africa, the company said today.

Unit Huaxin Hainan Investment will buy a 75 percent stake in Lafarge Zambia from French cement maker Financière Lafarge, which happens to be a major shareholder in Huaxin through its subsidiary Dutch finance firm Holchin, for USD112.5 million, it said. It will also make compulsory cash offers to public stakeholders to buy up the remaining 25 percent equity.

Huaxin is also willing to shell out USD10 million to purchase Pan African Cement from Lafarge Cement Malawi. In all, it is prepared to invest USD160 million.

The deal, which is still subject to approval by authorities, would give Wuhan, central Hubei province-based Huaxin an additional output of 1.75 million tons of cement a year in the two countries. It can further increase cement production through the limestone resources the two firms own, it added.

Lusaka-based Lafarge Zambia operates two cement plants with an annual output of 1.5 million tons, it said. Lafarge Cement Malawi has a cement grinding mill with a yearly capacity of 250,000 tons.

Huaxin Cement’s share price [SHA:600081] closed down 1.71 percent at CNY20.71 (USD3.2) today.

Editor: Kim Taylor