eBusiness Weekly
Business Writer
South Africa’s Public Investment Corporation (PIC), the biggest fund manager on the continent, has reduced its shareholding in cement producing company Pretoria Portland Cement (PPC).
Apart from South Africa, PPC also has operations in Zimbabwe, Rwanda and DRC.
In a statement published on the Zimbabwe Stock Exchange website, PPC announced the disposal of equity in the company by PIC in terms of section 122 of the Companies Act, Act No. 71 of 2008, as per JSE requirement.
“In accordance with section 122(1)(b) of the Companies Act, No. 71 of 2008 and section 3.83(b) of the JSE Listings requirements, shareholders are hereby advised that PPC has received formal notification that PIC has disposed of an interest in the ordinary shares of the Company, such that the total of all beneficial interest in the ordinary shares of the Company held by PIC has been reduced from 9.52 percent to 4.93 percent of the total issued share capital of PPC,” reads the statement released by the company.
The disposal by PIC comes at a time the cement maker is buckling under a massive debt burden, which analysts believe is threatening to sink the company.
PPC, which is currently not trading on the ZSE due to an unrelated issue, is working on reorganising its international business unit — which manages its stakes in its Rwandan, Ethiopian, DRC, Mozambique and Zimbabwean operations.
The Johannesburg-based company needs to restructure its enormous R5,8 billion in gross debt, almost two thirds of which (R3,8 billion) is mostly dollar-denominated and relates to its operations in Zimbabwe, the DRC and Rwanda.
The reorganisation of PPC’s international operations will see it dilute its stake in PPC International Holdings, the unit that manages its stakes in Rwanda (CIMERWA), Ethiopia (Habesha), DRC (PPC Barnet) and PPC Mozambique to about 50 percent from the current 100 percent. The reconfigured PPC International Holdings will in future also include PPC’s Zimbabwe unit.
According to reports, PPC has committed to conclude the reorganisation of its international business before proceeding with plans to raise additional capital by selling non-core assets such as its lime business as well by issuing new shares.
