R/€ = 15.29Change: 0.00
R/$ = 14.43Change: 0.05
Au 1067.48 $/ozChange: 3.78
Pt 839.00 $/ozChange: 7.50
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

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

PPC unveils R1.1bn BEE deal, to expand SA mining operations

Africa|Cement|Charter|Efficiency|Mining|Pretoria Portland Cement|Pretoria Portland Cement Company Limited|Resources|Risk Management|Africa|South Africa|Black Women Groups|Cement Maker|Paul Stuiver|Operations
Africa|Cement|Charter|Efficiency|Mining|Resources|Risk Management|Africa||||Operations
© Reuse this

Following the announcement that PPC would sell a 6.5% stake to employees and black investors in a transaction valued at R1.1-billion, CEO Paul Stuiver said on Wednesday that the JSE-listed company was looking to expand its mining operations in South Africa.

“The key reason for the black economic-empowerment (BEE) transaction was to comply with requirements of the Mining Charter,” he said in a conference call.

The broad-based black economic-empowerment (BBBEE) transaction, the group’s second in four years, entailed the placing of an additional 39.3-million ordinary shares, of which 68% would be issued to staff, 27% to PPC’s existing strategic black partners and 5% to a new trust focusing on black women groups in areas where the company operates.

This would increase the direct black ownership of the PPC group to 20.8%.

“PPC’s mining operations are often underestimated, but we have ten mining operations in South Africa. We mine a total of about 20-million tons of material a year,” Stuiver said.

Noting that these were “quite sizable” operations, he said that the company also had about ten mining licence conversions pending. “In principal agreement with the Department of Mineral Resources, we see this transaction taking us to a stage where our mining licences are converted,” Stuiver said.

The BEE transaction would also allow PPC to streamline its corporate structure by creating separate South African and international operating entities, thereby aligning the structure with its strategy to expand its footprint on the African continent.

“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.”

The holding company, Pretoria Portland Cement Company Limited would also be renamed to PPC Limited.

Meanwhile, Stuiver said the latest transaction was structured for the benefit of those parties closest to the business. “We were particularly keen for our 2 400 South African employees to participate at a significant level and this transaction will result in them owning about 7% of the PPC group.”

All permanent employees of PPC in South Africa would participate. A portion of shares has been set aside for new employees joining the company during the next three years.

PPC’s strategic black partners are the same as those that participated in the 2008 BBBEE transaction, namely Peu, Nozala, Portland Consortium and Palama Cement Consortium (formerly Capital Edge).

The transaction is being facilitated through notional vendor funding at a fixed rate of 6% over a seven-year period. The company would issue new shares at once cent a share and no capital would be required from the participations other than the nominal share value to be paid by the strategic black partners.

The BEE parties would be restricted with regards to selling their shares in the seven-year period of the transaction.

PPC would 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.

PPC traded at R26.27 a share on Thursday morning, down 1.20% from the previous day’s closing price of R26.59 a share.

Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
Latest News
Sasol Inzalo chairperson Khungeka Njobe
Updated 7 minutes ago Following hot on the heels of the listing of MTN Zakhele earlier this month, petrochemicals company Sasol’s broad-based black economic-empowerment (BBBEE) fund Sasol Inzalo Public, followed suit on Tuesday – the second company to list on the Empowerment Segment of...
A Paramount Mbombe 6 armoured infantry vehicle undergoing winter trials in Kazakhstan
Updated 9 minutes ago South African private-sector defence group Paramount announced on Tuesday that it had started production at its new armoured vehicle plant in the Central Asian country of Kazakhstan. The start of production was marked by a visit to the plant by Kazakh President...
Minister in the Presidency Jeff Radebe
Updated 28 minutes ago Minister in the Presidency Jeff Radebe on Tuesday called on the media to deepen the China–Africa partnership by telling the “good story”.  “For a very long time Africa has been branded as a continent of doom, only characterised by malnourished babies, poverty, crime,...
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 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 infrastructure and network, the funding and maintenance of these respective networks, and...
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,...
This Week's Magazine
The BMW Group will invest R6-billion at BMW Group South Africa’s (BMW SA’s) Rosslyn plant to produce the next-generation X3 sports-activity vehicle (SAV) for the local and export markets. Rosslyn will continue production of the current 3 Series through its lifecycle,...
The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
City of Ekurhuleni executive mayor Mondli Gungubele earlier this month officially named the city’s bus rapid transit (BRT) system, Harambee.
NICK CHRISTODOULOU As about 58% of data stored by organisations is dark, they must identify this dark data to expose risks and valuable information
About 58% of unstructured data stored by companies is dark data, which means that the value or regulatory importance of the data has not been determined. Subsequently, most of the stored data add costs, rather than increasing revenue or reduce regulatory risks, says...
BRIAN VERWEY Effective management, review and administration of non-core elements can improve business operations and increase revenue and decrease unforeseen risks
Effective logistics, import/export and manufacturing consulting services require detailed industry knowledge and experience, but can add significant value to these industries by providing expert advice on various technical elements in their value chains, says...
Alert Close
Embed Code Close
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
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