JSE-listed cement producer PPC on Tuesday said the subscription agreements for its first broad-based black economic empowerment (BBBEE) deal had been concluded, resulting in a cash inflow of some R1-billion.
Participants in PPC’s 2008 BBBEE transaction, following the conclusion of the Strategic Black Partners and Community Service Groups components of the deal, had subscribed for 15.6-million shares.
Further, PPC bought back and cancelled 48.6-million shares at 10c apiece, which subsequently reduced net stated capital by 33-million shares to nearly 1.6-billion shares.
Work on the design and implementation of a new BBBEE, or BEE III, transaction is progressing well, with PPC planning to update shareholders on the process during the first half of 2017.
PPC will use the R1-billion to further reduce its debt and fund capital expenditure, in particular, relating to the Slurry Kiln 9 project.
The project, at PPC’s Slurry Complex in Lichtenburg, North West, will see the introduction of a new clinker production line at a cost of R1.5-billion to R1.7-billion, to boost overall output to 5 500 t/d by 2018.