Western Cement Subsidiary Intends to Acquire 134,100 CILU Shares for US $6 Million

On May 7, West Cement (02233) issued an announcement in relation to two agreements entered into by WIH Cement, an indirect wholly-owned subsidiary of the company, on January 27, 2025: (1) the HM Share Purchase Agreement with the HM Seller Group, HM AG and the Company, pursuant to which: WIH Cement conditionally agreed to acquire and HM Seller Group conditionally agreed to sell 1,574,900 shares of CILU (representing 91.02% of its issued share capital); And (2) the Intra-Group Transfer Agreement with the Company, HM AG and Scancem International, pursuant to which HM AG and Scancem International conditionally agreed to transfer the Intra-Group Repayment Claim to WIH Cement. On May 7, 2025, WIH Cement entered into the IFC Stock Purchase Agreement with IFC and the Company, pursuant to which WIH Cement conditionally agreed to acquire and IFC conditionally agreed to sell 134,100 shares of CILU, representing 7.75% of its issued share capital, for a consideration of US $6 million.

CILU is a company incorporated and registered in the DRC and is principally engaged in the operation of an integrated cement plant located in Lukala, the DRC, and the production and distribution of cement, cement clinker and lime powder. CILU operates a large limestone deposit in the vicinity of the plant. In 2019, CILU completed a cement kiln upgrade to help it control routine maintenance costs and keep the plant in good condition. With over 100 years of experience and strong brand recognition, CILU is one of the top players in the Congo cement market.

Taking into account the infrastructure investment and population growth in the DRC, the Group is optimistic about the long-term growth potential of the DRC market. The Group plans to acquire CILU, a modern integrated cement plant in the Democratic Republic of Congo (DRC), which is one of the top enterprises in the cement market in the Democratic Republic of Congo (DRC). The Board is of the view that this will enhance the Group's regional advantage in the cement industry in the DRC. Upon closing of the Transaction, the Group will acquire a controlling interest in CILU. The Group believes that with the Group's advantages in technology, management and cost, and the expected strong demand for cement in the DRC, this transaction will help the Group to lay the foundation and seize the opportunities in the cement industry in the DRC.