Singapore company gives up on business in Mozambique

9 October 2018

Singapore’s Compact Metal Industries has given up buying a controlling stake in a cement factory to be completed in Mozambique, the company’s management said on Monday.

Under an interim agreement signed in June, Compact Metal Industries would pay the selling companies SPI – Gestão e Investimentos and Guhava Serviços US$30 million for a 51% stake in the Salamanga cement plant in Bela Vista, Maputo province.

The Singapore company would also have to take on US$54.7 million in debt to the suppliers of goods and services contracted by the selling companies and secure the funds needed to complete the construction of the plant.

The company’s management, quoted by The Business Times, said it had given up the deal, in which it planned to buy 34% from SPI and 17% from Guhava, “so the parties do not have any other obligations under the signed document.”

The cement plant, with a daily production capacity of 5,000 tons, is owned by CIF-MOZ, a partnership between SPI with 54% and Guhava Serviços with 46%.

Compact Metal Industries was incorporated in 1973, listed on the Singapore Stock Exchange in 1993 and has been present in the Malaysian and Indonesian markets since 1988 and 1992, respectively. (macauhub)