Citadel Capital announced the signing of a Memorandum of Understanding (MoU) with the Algeria Cement Cement Industrial Complex, the Algerian holding company in the cement and building materials sector, to buy ASEC Cement in the Zahara plant in Algeria.
The agreement is expected to be completed by mid-2019, after the agreement on the fair value of the shares and the fulfillment of certain conditions.
ASEC owns approximately 52% of the shares directly and indirectly, while ASEC owns 35% of Zahana Cement's shares.
Asec announced in early September that its ASEC Cement subsidiary has begun a series of negotiations to exit the Zahana.ASEC has invested some 62 million dollars in Zahana.ASEC has increased the efficiency of Zahana plant to produce 750 thousand tons annually. A new card of 1.6 million tonnes a year and is expected to start production in early 2020.