PPC, the cement and related products group, said yesterday its wholly-owned subsidiary PPC International Holdings had successfully concluded the disposal of its 51% stake in Rwanda-based Cimerwa to National Cement Holding for $42.5 million (R794.96m) cash.
“All conditions precedent to the disposal have been fulfilled and the proceeds received. Approval by the Common Market for Eastern and Southern Africa (Comesa) Competition Commission, which is not required before implementation of the disposal, is anticipated to be received within 120 days,” the cement manufacturer said in a statement.
As a result of this, the effective date of the disposal was January 25, 2024. PPC’s directors said the group was net cash positive following receipt of the proceeds of the disposal.
PPC’s recently appointed CEO, Matias Cardarelli, said in a statement: “I am pleased with the timely completion of the sale of our stake in Cimerwa. Cimerwa is now part of a regional group that is better placed to support its growth. The disposal allows us to focus on our core southern African markets where we see opportunities to drive improved profitability and secure a more sustainable return on capital.”
PPC’s share price was trading 3.1% lower at R3.43 late yesterday afternoon, but the price was still 27% up on the price on the same day a year before.