PPC in US$133m deal with black investors

South African cement maker Pretoria Portland Cement (PPC) is to sell a 6.5 per cent stake to its staff and black investors in a deal worth about US$133.4m.

PPC said the broad-based black economic empowerment (BBBEE) deal, which is the second in four years, would take shareholding by black investors in its South African operations to 26 per cent and enable it meet the rules set out by the government.

PPC said on Thursday it would cancel about 20 million treasury shares it bought back to help counter the dilutive effect of the new 39.3 million shares to be issued for the transaction.

The company's 2400 South African employees will be issued 68 per cent of the new shares and existing and new women groups would take up the rest.

Paul Stuiver, CEO of PPC, said: “This transaction was structured for the benefit of those parties closest to our business. We were particularly keen for our 2400 South African employees to participate at a significant level and this transaction will result in them owning approximately 7% of the PPC group.”