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Investment in AfriSam to be written off by Holcim

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The world’s second largest cement manufacturing company, Holcim will be writing off an investment in one of South Africa’s chief cement makers, AfriSam. The Swiss cement maker is also in the process of evaluating its assets in construction markets from Spain to the USA.Around ??43m in debt and interest owed by AfriSam will be waived off by Holcim. This will also clear the way for South Africa’s state pension manager, Public Investment Corporation (PIC) to take over the South African cement manufacturer.More than R20 billion of AfriSam’s near term debt is planned to be converted by PIC into equity for preventing it from slipping into bankruptcy. The restructuring has been given the go ahead by around 90 percent of AfriSam’s investors. PIC believes that the restructuring exercise will reduce AfriSam’s debt by around R15 billion.

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