JSE-listed cement manufacturer PPC has signed a binding sale and purchase agreement with a Botswana-based construction and mining company, which will buy PPC’s 100% shareholding in PPC Aggregate Quarries Botswana.
The transaction is valued at 47.5-million Pula, equivalent to R60-million, and should be finalised by August 1.
Meanwhile, the company expects to report between 14% and 18% higher earnings before interest, taxes, depreciation and amortisation for the financial year ended March 31.
The increase in earnings is notwithstanding the group having incurred restructuring costs in the current financial year and the Level 5 lockdown in April last year.
Earnings per share (EPS) for continuing operations will, therefore, be between 247% and 258% higher, at between 63c and 68c apiece. This compares with EPS of 43c apiece posted for the year ended March 31, 2020.
This while EPS for the group is expected to be between 10c and 15c apiece, which is an increase of between 108% and 112% from the 124c apiece loss posted in the prior year.
Earnings for the 2021 financial year were impacted by hyperinflation, resulting in a net monetary loss of R200-million in the year under review, compared with a gain of R651-million in the prior year.
PPC will release its results on or about June 21.