Limestone quarry
JSE-listed PPC’s subsidiary PPC South Africa has entered into transaction agreements with Kgatelopele Lime on the disposal of PPC Lime for R515-million.
Kgatelopele is a private company that was formed for the purposes of the PPC Lime acquisition.
The company’s shareholders comprise mineral resources trader IMR Resources South Africa, mining-focused investment holding companies Kolobe Nala Investment Lime and HEX2M, as well as JJJL Mining – which is an entity owned by a former PPC CEO Johannes Claassen, who has extensive understanding of PPC Lime and its operations.
PPC embarked on a restructuring and refinancing project in 2020, during which PPC Lime was identified as a noncore operation to the group and a structured sale process was initiated in December 2020.
Following the sale, PPC Lime will be 39% black-owned, comprising black economic empowerment investors, relevant PPC Lime employees and host communities of PPC Lime.
PPC Lime manufactures and distributes reactive lime, hard burnt lime, hydrated lime, burnt dolomitic lime and raw limestone; it supplies industries such as iron and steel, alloys, gold, uranium, copper, nonferrous metals, sugar refining, water treatment and flue gas desulphurisation.
PPC Lime mines out of two quarries, while a rotary kiln plant manufactures the burnt product, all of which are based in the Northern Cape.
PPC expects the transaction to conclude by the end of the year and will use proceeds from the sale to de-gear PPC’s South African balance sheet.
The group continues to review the need for a capital raise for about R750-million for further de-gearing purposes.