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JOHANNESBURG - AECI Limited, a major player in the chemical sector, has announced the sale of its Public Water business through a binding Memorandum of Agreement. The business, operated by AECI’s subsidiary Improchem Proprietary Limited, will be transferred to a majority black-owned special purpose vehicle in South Africa.
The transaction involves Nsukutech Proprietary Limited as the controlling shareholder and Junaco (T) Limited, a Tanzanian company, holding a minority stake. Nsukutech is known for its specialty chemicals for water treatment and other applications, while Junaco has been a key partner in distributing AECI’s water treatment chemicals across Africa for over 15 years.
AECI’s Public Water division specializes in the manufacturing and supply of water treatment chemicals and engineered solutions, catering primarily to the public sector. This divestiture aligns with AECI’s strategy to shed non-core assets, streamline its operations, and enhance the company’s focus on its core business segments.
CEO Holger Riemensperger commented on the divestment, emphasizing that it is a strategic move to optimize AECI’s asset portfolio and support the company’s capital allocation strategy. The goal is to position AECI for sustainable growth and improved performance in its principal business areas.
The transaction is not considered significant under the JSE Listings Requirements, being neither a Category 1 nor Category 2 transaction. However, it is contingent upon the finalization of definitive sale agreements and obtaining necessary regulatory consents, including competition approval.
The sale is expected to facilitate a smooth transition of the Public Water business, ensuring continuity of service and supply for the public water market. This move reflects AECI’s commitment to focusing on its core competencies while enabling the Public Water division to thrive under new ownership.
The information disclosed is based on a press release statement from AECI.
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