Libya Holdings Group (LHG), an investment company focused on growth opportunities in the Libyan market, is to acquire a majority stake in Libyan Cement Company (LCC) through a special purpose acquisition vehicle.
The transaction will mark a further step towards establishing LHG’s position as a dominant force in the country’s industrials market and signals investor confidence in Libya’s long-term economic potential.
The LHG sponsored vehicle will acquire a controlling interest in LCC from QuadraCir Group (QuadraCir).
QuadraCir, formerly named Asamer Holding AG, was the holding company of the Austrian Asamer industrials group. Following the restructuring of the Asamer industrials group in the wake of the global financial crisis, QuadraCir is now the holding company of certain non-core assets of the Asamer industrials group.
It is anticipated that the acquisition will close by 30 April 2015. The transaction will be funded by LHG, using its existing cash resources, together with some of the leading families and industrial companies in the GCC region as co-investors.
LCC is the oldest cement company in Libya, has a significant market share in the Libyan cement market, and is the only producer of cement in eastern Libya. Under the terms of the acquisition, LHG and its co-investors are committed to investing tens of millions of US dollars to finance LCC’s capital expenditure plan designed to stabilise operations and increase the production capacity to over 3 million tons per annum. These investments will ensure LCC is able to meet the growing demand for cement in eastern Libya which is currently heavily reliant on imports.
It is also intended that LHG will retain the existing management team of LCC, alongside Asamer’s technical knowhow, to ensure operational continuity. Longer term, LHG’s ambition is to continue to invest in modernising the factories and empowering a new generation of Libyans to develop the technical expertise and intellectual property for the ongoing development of the company.
Commenting on the acquisition, Ahmed Ben Halim, Founder and CEO of LHG, says: “We are very pleased to have been able to execute this transaction in a complex environment, retaining operational continuity for the cement company and at the same time securing its long-term growth potential which will benefit the Libyan economy.”
“This acquisition demonstrates investor confidence in the growth capacity of the country, and will further LHG’s strategy of becoming Libya’s leading industrial group active in the energy, infrastructure and finance sectors.”
Robert Solomon, CEO of LCC, a 40-year veteran of the cement industry, says: “We believe that this investment will be extremely positive for our customers, employees and partners. LHG’s commitment to the operational continuity provides stability for the company, while its commitment to growing capacity makes it an ideal long-term partner for the development of the country’s industrial capabilities.”
LHG has a strong track record of investing in the Libyan market and is the partner of choice for international investors seeking to participate in the country’s emerging investment opportunities. This includes a large scale venture in the power generation space. Established in 2011, LHG has secured the investment of merchant families and institutions in the GCC seeking to participate in the development of Libya’s energy, infrastructure and finance network. LHG boasts the leadership and expertise of Ahmed Ben Halim, who has an outstanding track record of over 30 years working in the asset management industry and has built businesses in the UK, USA and GCC. Source: Private Equity Wire