Nigeria seeks new terms from Sinoma

PUBLISHED : Thursday, 20 November, 2008, 12:00am
UPDATED : Thursday, 20 November, 2008, 12:00am

Shares in China National Materials (Sinoma) and Shanghai-listed unit Sinoma International fell yesterday after the firms said US$3.25 billion worth of projects in Africa faced delays and reduced payments.

State-owned Sinoma fell 9.1 per cent to HK$2.90 in Hong Kong while Sinoma International dipped 1.2 per cent to 33.96 yuan (HK$38.62) in Shanghai.

Sinoma International said it had received a notice from Nigeria's Dangote Group proposing delays and reduced advance payments on some of the nine projects it signed with the mainland firm earlier this year.

The projects involved building cement plants in Nigeria, Senegal, Tanzania, Congo, Ethiopia, Zambia and Equatorial Guinea, for which Dangote would pay Sinoma International a total of US$3.25 billion. Sinoma International said it was now in talks with Dangote on this matter.

Dangote was founded by Aliko Dangote, the first African to make it to the Forbes rich list, ranking No334 this year with an estimated net worth of US$3.3 billion.

As Sinoma holds 53.3 per cent of Sinoma International, 'the possible changes in certain projects of Sinoma International may affect the revenue of Sinoma in future', it said.

'Under the influence of the global financial crisis, some of Sinoma International's overseas cement production engineering projects are being expanded by overseas partners, while other overseas partners are taking a wait-and-see attitude, delaying or halting some projects.

'Sinoma International is in discussions with overseas partners on existing or prospective projects.'

Sinoma vice-president Su Kui said he was unaware of further details of Dangote's proposal.