PPC signs R1.1bn BEE
13 July 2012 | Jeanette Clark
The Department of Mineral Resources Mining Charter requires 15% Black ownership by 2009 and 26% Black ownership by 2014.
Because of the 80:20 revenue split between the South African operations of PPC and its international operations, the company said in a presentation on its second stage of the BEE deal that the department of mineral resources “agreed with the principle that 20.8% direct Black ownership at group level would equate to 26% effective Black ownership of South African operation”.
PPC, a supplier of cement in southern Africa and also producer of aggregates, metallurgical-grade lime, burnt dolomite and limestone, has to adhere to the department of trade and industry’s B-BBEE codes of good practice as well as the Mining Charter.
“People often underestimate our mining operations,” chief executive officer Paul Stuiver said in a conference call yesterday.
He said PPC mines about 20m tons of material per annum through ten mining operations, for which it applied for the conversion to new-order mining rights in 2009.
He said that the transaction of the second phase of the BEE deal will take PPC to a stage where the licenses could be converted.
PPC announced the R1.1bn broad-based BEE ownership transaction in which employees will get 68% of the remaining 6.5% ownership that will be transferred, existing black partners will receive 27% and a newly formed trust for broad-based women’s groups will get 5%.
The cost of the transaction, R325m, is 30% of the transaction value and 2.05% of PPC’s market capitalisation.
The transaction is valued at R1.1bn based on 39.3m shares at R27.39 per share, which is the 30 day VWAP value as at 9 July.
YOU MAY ALSO BE INTERESTED IN
looklocal Pretoria Moot
looklocal Pretoria East
looklocal Randfontein Westonaria
looklocal Rosebank Killarney
looklocal Eastern Highveld