International Cement Group (ICG) plans to acquire cement-related assets in Kazakhstan for a cash consideration of KZT 7.07 billion ($22.11 million).

In a filing to the Singapore Exchange (SGX) dated April 12, ICG announced that its wholly-owned subsidiary International Cement Shar has incorporated a subsidiary in Kazakhstan in which it owns a 60% stake.

The remaining 40% stake is owned by Nurzhan Shakirov, a Kazakhstan citizen and the local partner for ICG’s existing cement plant in Kazakhstan, Alacem.

SEE:Compact Metal Industries reborn as International Cement Group, embarks on ambitious growth in cement production

The subsidiary, Sharcem, has entered into a sale and purchase agreement with Kazakhcement to acquire a cement plant and its related assets located in East Kazakhstan.

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The assets include seven land plots totalling 125 hectares and objects located on the land plots, as well as leases for seven land plots totaling 42 hectares which contain a 100-kilovolt power transmission line.

The consideration of $22.11 million is payable across two installments, with $6.63 million due by April 23, and $15.47 million payable by May 31.

ICG says that the proposed acquisition is an attractive opportunity for the group to establish a stronger foothold in Central Asia.

Based on proforma financials as of Dec 31, 2020, ICG’s earnings per share for FY2020 ended December would increase from 15 cents to 17 cents.

Shares in ICG closed 0.1 cents or 1.75% lower at 5.6 cents.