All conditions set for the R1.1 billion second phase of its broad-based black economic empowerment (BEE) transaction had been fulfilled, Pretoria Portland Cement (PPC) said on Friday. The deal, which was announced in July, will give the cement and lime producer an effective 26 percent black ownership, as required by the mining charter, enabling it to convert its old order mining rights to new order rights. The first phase of the deal in 2008 resulted in 15.3 percent of its shareholding being placed under black ownership in line with the charter requirements at that time. In the second phase 39.3 million shares or 6.5 percent of PPC’s increased share capital, will be placed under black ownership, raising direct black ownership to 20.8 percent.
Of the 6.5 percent stake, PPC will issue shares worth R733 million to its roughly 2 400 permanent South African employees, including whites, and shares worth R291m to its strategic black partners while R54m will be for the benefit of black women groups in the Bafati Investment Trust. PPC stock fell 0.85 percent to R29 on Friday. – Roy Cokayne