Zimbabwe’s PHL agrees ownership deal with government

PPC-owned cement producer Portland Holdings Ltd (PHL) has agreed an ownership deal with the Zimbabwean government and plans to invest US$200m to expand its operations in the country.

PPC said the deal followed a series of engagements between PHL and the Economic Empowerment Ministry which culminated with the approval of an empowerment plan that complied with the indigenisation legislation.

Zimbabwe’s indigenisation and empowerment laws require foreign-owned firms to sell at least 51 percent of their shareholding to indigenous people. Through PPC’s secondary listing on the Zimbabwean Stock Exchange and an existing PHL employee share option plan, PHL had a pre-existing indigenous shareholding of 21.4% so to be compliant with empowerment and indigenisation legislation, the company would have to sell a further 29.6% to four indigenous parties – PPCZ Special Community Trust, the National Indigenisation and Economic Empower Fund and the employee share option plan consisting of PHL employees and strategic equity partners.

“We are happy with PPC’s commitment to Zimbabwe and I am pleased to say the company has set up a plant in Mashonaland West which will cost US$200 million,” Minister of Youth Development, Indigenisation and Empowerment Savior Kasukuwere said.