South African cement producer PPC will sell a 15% stake worth R2,7-billion to black investors to meet government requirements on black ownership, it said on Thursday.
Pretoria Portland Cement (PPC), which was spun off from industrial group Barloworld last year, said the deal would benefit 3,5-million people in South Africa.
Strategic black investors will get a 7% stake while PPC’s black staff, community groups, an educational trust and a construction industry association trust will get 8,15% of PPC’s ordinary issued share capital under the deal.
South African firms must meet targets on black ownership, management and procurement as part of a government drive to shift more of the mostly white-controlled economy into black hands. Good empowerment credentials make a company more likely to qualify for government tenders.
PPC said earlier this week it had appointed four black senior executives to improve its black empowerment credentials.
The company also said it planned to raise about R1,5-billion in long-term debt to replace existing short-term debt that was raised to fund expansion projects and working capital requirements. — Reuters