EMPOWERMENT
PPC adds R2bn to upliftment agenda
The top-up will complement residual empowerment shareholdings from two previous transactions
PPC has made a R2.1bn top-up to its broad-based black economic empowerment programme, providing such stakeholders with an effective 30% at holding company level. The PPC Phakama transaction is valued on a derived intrinsic equity value of R10.2bn for PPC’s South African assets before adjustments for a noncontrolling and unlisted interest. The valuation was done by an independent valuator. The share fell 6.46% near the close. "The appropriate [empowerment] credentials are important to PPC as it falls under the Mineral and Petroleum Resources Development Act," Electus Fund Managers analyst Mish-al Emeran said. The cement producer’s quarries need mining licences and prospecting rights. PPC had been noncompliant in this respect from September 2016 following a R4bn rights issue and this constituted a risk for the business, he said. The empowerment "cost to existing shareholders is not always immediately quantifiable but it will clearly lead to dilution". PPC believed the dilution would b...
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