Afrimat offers to buy out remaining Infrasors shareholders

AFRIMAT, one of SA’s largest producers of aggregates, concrete bricks and blocks, and ready-mixed concrete, said on Friday it had offered to buy the shares of South African resources group Infrasors that it does not already own at 35c a share.

Afrimat had previously bought an initial 50.7% interest in Infrasors, a diversified miner, from Hanchurch Asset Management and retiring Infrasors management for R33m.

Owing to Afrimat’s holding surpassing 35% of the issued ordinary share capital, it was required, under section 123 of the Companies Act, to extend an offer to the remaining ordinary shareholders of Infrasors.

Afrimat CEO Andries van Heerden said the Infrasors purchase had strengthened Afrimat’s foothold in the industrial minerals sector and expanded its reach across SA.

Since the initial announcement of the acquisition in January all conditions precedent had been met, which had triggered the change of control on March 1 and Afrimat’s announcement of its mandatory offer.

“The Infrasors acquisition makes strategic sense in light of Afrimat’s existing operation at dolomite mine Glen Douglas, which was acquired in January 2011 and successfully turned around by the group. Silica is an additional complementary product … brought on board by the Infrasors transaction. The group has now expanded its footprint in the northern provinces without needing to create additional capacity,” Mr van Heerden said. Further, he said Afrimat had demonstrated its ability to turn around underperforming assets by increasing production volumes and capacity, and widening product range. The company would apply the same management processes and marketing expertise to Infrasors’ assets.

Afrimat’s 50.7% stake gave immediate strategic control.

Mr van Heerden and Afrimat financial director Hendrik Verreynne joined the Infrasors board as nonexecutive directors.

Infrasors listed on the JSE alternative exchange in April 2007. It migrated to the JSE’s main board in February 2010.

Infrasors’ main products dolomite, limestone and silica.

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