http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.71Change: -0.04
R/$ = 10.96Change: -0.01
Au 1191.45 $/ozChange: -7.00
Pt 1223.00 $/ozChange: -6.50
 
 
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 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|NVF|PPC Group|Pretoria Portland Cement Company Limited|Resources|Africa|South Africa|Black Women Groups|Mining|Women Groups|Paul Stuiver|Paul Stuiver Explained|Operations
Africa|Cement|Resources|Africa||Mining|||Operations
africa-company|bafati-investment-trust|cement-company|nvf|ppc-group|pretoria-portland-cement-company-limited|resources|africa|south-africa|black-women-groups|mining|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
In support of coming together to encourage stronger networks, and develop strategies and models focused on building momentum and growth within the procurement, supply chains and logistics industry in Zimbabwe, Dovetail took part in the Transport Logistics Indaba 2014...
World Finance, a leading financial magazine based in the United Kingdom, has cited International Container Terminal Services, Inc. as among the Project Finance Deals of the Year 2014 “The World’s Best Infrastructure Projects.” Released in a supplement, World Finance...
Amid the growing use of telematics data in commercial vehicle management, fleet managers and owners are increasingly finding themselves overwhelmed by the wealth of information that they receive from Telematics Service Providers. From statistics on fuel consumption...
More
 
 
Latest News
A Spoor & Fisher partner on Wednesday called on the Department of Trade and Industry (DTI) to finalise its proposed policy for Intellectual Property (IP). The policy, which had not been drafted in consultation with IP law experts, was published in September 2013,...
Auditor-General Kimi Makwetu
Auditor-General Kimi Makwetu has called on all government leaders to play a crucial role in ensuring that government departments and entities improve their audit outcomes. He has raised concerns over irregular expenditure, non-compliance with legislation, auditees...
The Somalia Stock Exchange expects seven companies in the telecoms, financial services and transport sectors to list their shares when the bourse is set up in 2015, its founder said. Somalia's economy is slowly recovering from more than two decades of conflict,...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
JSE-listed real estate investment trust (REIT) Rebosis Property Fund achieved a distribution growth of 8.1% to 99.45c per linked unit in the financial year ended August 31, despite volatile market conditions.
JAMES ROBERTS The MOM incubator was designed to help babies in developing nations who were dying in conflict-struck nations or who do not receive hospital care
A low-cost, inflatable incubator won this year’s international James Dyson design award, which aims to encourage and inspire the next generation of design engineers.
The World Bank released its ‘Doing Business 2015: Going Beyond Efficiency’ report last month and ranked South Africa 43 out of 189 global economies for its ease of doing business, with Singapore topping the rankings.
Air Products South Africa officially launched its R300-million Eastern Cape air- separation unit (ASU), at its new manufacturing facility in the Coega Industrial Development Zone (IDZ), earlier this month. It is the second facility that Air Products launched in South...
BMW South Africa (SA) has signed a power purchasing agreement with energy company Bio2Watt. The offtake partnership will bring renewable energy to the carmaker’s Rosslyn plant, north of Pretoria.
 
 
 
 
 
 
 
 
 
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