South African cement firm PPC said on Monday it will buy a stake in an Algerian cement company as part of its drive to boost sales outside its home market.
PPC said it would buy a 49% stake in Hodna Cement, which planned to construct a $350-million plant in the country.
PPC did not disclose how much the deal would cost but said it would be funded on a project finance basis, with 80% of the debt to be sourced from local Algerian banks.
PPC was also constructing cement plants in Ethiopia, Rwanda and the Democratic Republic of Congo.
“This project sees us entering yet another African country and gives us confidence that by 2017, 40% of PPC revenues will be earned outside of South Africa,” chief executive Ketso Gordhan said.