http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.87Change: 0.01
R/$ = 13.30Change: 0.00
Au 1133.54 $/ozChange: -1.31
Pt 1018.00 $/ozChange: -2.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 12, 2012

Company Announcement: PPC Announcement of a Second Phase Empowerment Transaction Resulting in 26% Black Ownership of PPC South Africa

Back
Africa|Bafati Investment Trust|Cement|Charter|Mining|NVF|PPC Group|Pretoria Portland Cement Company Limited|Resources|Risk Management|Sustainable|Africa|South Africa|Black Women Groups|Women Groups|Paul Stuiver|Paul Stuiver Explained|Operations
Africa|Cement|Charter|Mining|Resources|Risk Management|Sustainable|Africa||||Operations
africa-company|bafati-investment-trust|cement|charter|mining|nvf|ppc-group|pretoria-portland-cement-company-limited|resources|risk-management|sustainable|africa|south-africa|black-women-groups|women-groups|paul-stuiver|paul-stuiver-explained|operations
Download PDF
Pretoria Portland Cement Company Limited (0.23 MB)
 

Pretoria Portland Cement Company Limited (PPC) is pleased to announce a second phase broad-based black economic empowerment transaction which entails the placing of an additional 39.3m ordinary shares or 6.5% of PPC's increased share capital under black ownership. Following the first phase BBBEE transaction for 15.3% during 2008, this will increase the direct black ownership of the PPC Group to 20.8%.

Taking into account the 80:20 revenue split between the Groups South African and international businesses the transaction will result in an effective 26% black ownership of PPC's South African operations and enable the company to meet the South African mining rights conversion requirements as set out by the Department of Mineral Resources in terms of the Mining Charter.

Of the additional shares being issued the major portion or 68% shares will be issued to the employees of PPC's South African businesses. 27% of shares will be issued to PPC's existing strategic black partners and 5% to a newly created trust that will focus on Black women groups in areas where the company operates.  The transaction value of approximately R1.1bn is estimated based on the 30 day volume weighted average price of PPC shares as at Monday 9 July, of R27.39 per share.

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. An employee trust has been established to hold the employee shares. All permanent employees of PPC in South Africa will participate. A portion of shares has been set aside for new employees joining the company during the next three years.

The SBPs are the same as those which participated in the first phase BBBEE transaction during 2008 being Peu, Nozala, Portland Consortium and Palama Cement Consortium (formerly Capital Edge) who have contributed to the company on a number of fronts during the past four years.  PPC has established the Bafati Investment Trust for the purpose of holding shares for black women groups in the vicinity of its operations. The board of trustees for this trust will comprise a majority of women.  Paul Stuiver commented: This transaction demonstrates our on-going commitment to transformation and broad-based empowerment in the spirit of the Mining Charter. Additionally it will further enhance our BBBEE credentials.

The transaction is being facilitated through notional vendor funding at a fixed rate of 6% over a period of seven years. The estimated facilitation cost to the company is in line with market precedents at 2.05% of the company's market capitalisation. The company will issue new shares at a nominal value of R0.01 (one cent) per share and no capital is required from the participants other than the nominal share value to be paid by the SBPs. The BEE parties will be restricted with regards to disposing or encumbering their shares during the seven year period of the transaction.

During the seven year term of the scheme, all participants will enjoy a trickle dividend of 20% of ordinary dividends, with the balance 80% going towards the NVF structure. After 7 years, participants will be allocated the remaining shares after the notional vendor fund balance has been settled. Additionally they will become entitled to 100% of dividends and be able to trade their shares. The participants will be entitled to exercise all their voting rights over the new shares from the outset.

Paul Stuiver explained:We have put this facilitation structure in place in order to ensure a sustainable transaction that maximises share vesting and value transfer to the BEE participants. PPC will be cancelling 20 million treasury shares prior to implementing this phase of the BBBEE transaction. These shares were purchased by PPC in order to mitigate the potential dilution to shareholders during the first phase of the transaction.

The transaction will also allow PPC to streamline its corporate structure by creating separate South African and international operating entities, thereby aligning the company's structure with its strategy to expand its footprint on the African continent. At the same time the holding company, Pretoria Portland Cement Company Limited will be renamed to PPC Limited. Paul Stuiver concluded: Aligning our corporate structure with our strategy will result in greater efficiency and better risk management. We were unable to do this prior to converting our South African mining rights.

PPC will issue a circular to shareholders during August with further details on the transaction. PPC will publish a notification containing relevant dates and times such as the details of the general meeting at which shareholders will be requested to vote on resolutions relating to implementation of the transaction.
 

Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Announcements News
As part of its commemoration of Women’s Month, Barloworld Equipment launched its Women in Leadership Programme this week in Sandton. Barloworld Equipment is the sole accredited dealer for Cat earthmoving machines, power systems and related mining and construction...
In recent years, we have seen a global move towards the use of renewable energy, in particular Photovoltaic solar energy.  However, PV generation is not necessarily the obvious choice for Africa.  Concentrated Solar Power may be a better alternative, as it is...
With South Africa's national water ministry on record saying it needs over R600 billion to fix the country's water and sanitation infrastructure, WEC Projects has taken a modest yet positive step in the right direction by continuing to invest in its Maintenance &...
More
 
 
Latest News
A preliminary investigation by the Railway Safety Regulator (RSR) into the derailment of a Shosholoza Meyl train in Kimberley earlier this month, found that Transnet Freight Rail (TFR) had failed to communicate with the Passenger Rail Agency of South Africa (PRASA)...
Three of home improvement company Illiad’s major shareholders – Sanlam, Visio and Coronation, which held 69.25% – have agreed to vote in favour of a takeover by Steinhoff, with the company’s remaining shareholders to vote on the deal on September 29. Seventy-five per...
Government should face the fact that South Africa’s full-blown jobs crisis is a matter of urgent public importance, the Democratic Alliance (DA) said on Friday. MP James Vos, the DA shadow minister of tourism, was responding to a letter by Baleka Mbete, the Speaker...
More
 
 
Recent Research Reports
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
MARAIS VAN HEERDEN The owner/operator should be able to view the overall project design and progress made at any time
Three-dimensional (3D) engineering design models can now be viewed on tablets, which enable stakeholders to view the design without having to buy the design software used to create it, says engineering design firm 3DDraughting executive Marais van Heerden. The...
Ford’s newest offering in a long list of newcomers to the local market in the last two years is the B-Max multi-activity vehicle (MAV). The B-Max will play in the so called B-MAV segment, or the small MAV segment, currently dominated by Toyota’s Avanza, which sells...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96