The Pretoria Portland Cement (PPC) broad-based black economic empowerment deal, to be finalised early next year, will be worth R4 billion at current market prices.
“It’s not a peanuts deal,” chief executive John Gomersall said yesterday. “It is very broad based and involves the sale of 15 percent of PPC.”
He said the board had approved the principles of the structure and the likely funding of the deal.
The structure will include equity ownership by employees, communities and industry associations through various trusts, and a number of strategic black partners, who have not yet been named.
The deal was announced last January and was scheduled to be completed by the end of last month.
Gomersall said PPC had made significant progress. “We are in the final phase of concluding the transaction and anticipate seeking shareholder approval early next year.”
One reason for the delay was that the deal required about 65 agreements to be drafted.