‘Raysut Cement has signed a letter of intent with the shareholders of Sohar Cement Factory, a limited liability company registered in Oman, with respect to the purchase of all of its shares’, the company said in a disclosure to the Muscat Securities Market on Sunday.
The company said that the parties are currently discussing the terms of the proposed acquisition. ‘Raysut Cement will keep its shareholders informed of any significant future developments as and when they happen’. The company, however, did not provide any financial details about proposed transaction.
Located within the phase 7 of Sohar Industrial Estate, Sohar Cement Factory is being developed by a partnership between Sohar Cement and UAE-based Fujairah Cement Industries.
Fujairah Cement’s investment in Sohar Cement Factory represents 20 per cent interest in the company, according to Fujairah Cement’s latest financial report. As per Fujairah Cement’s financial report, Sohar Cement Factory is licensed to engage in manufacturing of all kinds of cement and has commenced commercial production in July 2018.
In December, Raysut Cement announced that it has expressed interest to acquire ARM Cement of Kenya as part of the company’s aggressive strategy to expand in East and Central Africa.
The group is already in the process of setting up a grinding unit in Somaliland and Mogadishu in Somalia with a Dubai-based partner. It is also in advanced discussions to acquire various cement producers in Uganda and Djibouti. Plans are also afoot to build a 1mn tonnes per annum cement plant in Berbera, Somalia. Last year Raysut Cement board also approved initial study to be carried out to explore the establishment of a 1mn tonnes per annum integrated cement plant in Georgia.