Afrisam Cuts Debt by 15 Billion Rand as Pembani Gains Control

Afrisam Ltd., a South African cement manufacturer partly owned by the Public Investment Corp., said it completed a debt-reduction program and Pembani Group is gaining operational control of the company.

Afrisam’s “balance sheet has been significantly strengthened by an overall debt reduction” in excess of 15 billion rand ($1.6 billion), the company said in an e-mailed statement today. “A consortium of local financial institutions has recently provided the company with a sustainable long-term debt solution.”

The PIC, a state-owned company which manages assets of about 1.2 trillion rand, including government employee pension funds, and Pembani, an investment company with stakes in the energy industry, have injected “significant equity” in Afrisam, according to the statement.

Pembani is led by Phuthuma Nhleko, a former CEO of phone company MTN Group Ltd.