Imritec Limited is pleased to announce that it has, through Imritec Technologies Ltd, acquired all the shares in Alumicor SA Holdings (Pty) Ltd the owner of South African re-smelting operation Alumicor Maritzburg. The acquisition brings Imritec its second processing plant in the country.
Alumicor has a 15-year relationship with the adjacent Hulamin, the largest aluminium semi-fabricator and rolling mill in Sub-Saharan Africa, with an indefinite contract to treat its aluminium dross, swath and scrap. The plant currently processes up to 1,700 tonnes per month of material delivered by a private road from Hulamin.
This transaction has an effective date of 31 January 2020, subject to approval of the transfer of ownership the Industrial Development Corporation of South Africa (IDC). The IDC has provided Alumicor with a development loan which, if the approval is not forthcoming, Imritec intends to repay to allow the transaction to proceed. To make this repayment Imritec would need to raise funds through a capital raising, or through related party loans to be repaid when equity funding is available.
To acquire the Alumicor Group, Imritec Limited will issue 11,439,180 shares at R3.00 (~A$0.30) per share ($3,467,007). Imritec will also assume a liability of ZAR2,399,298 ($242,394) owed to Alumicor from one of the vendors, and indemnified that vendor for any tax liability associated with the sale up to ZAR310,000 ($31,318).
The transaction for Imritec’s acquisition of Alumicor SA Holdings was based on an independent valuation of both companies.
After completion of the transaction Mr Sipho Mkhize, Chairman of Alumicor, will become a Director of Imritec.
COVID-19 IMPACT
In January 2020 the COVID-19 pandemic and by March 2020 it was impacting the global economy and the ability to conduct business in almost every jurisdiction. In South Africa the lockdown began 27 March and is scheduled to finish on 30 April 2020. AMR is operating at a reduced capacity due to Hillside Aluminium being deemed an essential service. Alumicor had ceased operating but started up full operation on Monday the 20 April when Hulamin got approval as an essential service. Both companies have sufficient funds to survive an extended lockdown period.
Lockdowns in South Africa and Seychelles are delaying expansion plans which will be restarted as soon as possible. Investors and related parties continue to express their interest in funding those plans. Imritec will continue to comply with government directions and regulations in all jurisdictions in which it operates.
We are looking forward to busy year in 2020 and will keep you updated with News posts on the website. If you wish to receive notifications in your inbox, please subscribe to our newsletter.
If you have any queries please contact:
Angela Pankhurst, angelap@imritec.com or +61 (0)412-022-039.