PPC completes sale of PPC Lime and PPC AQB

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The PPC Hercules cement plant in Pretoria, South Africa. Pic: Waldo Swiegers / Bloomberg
  • The sale completion is in line with the Group’s ongoing capital restructuring and refinancing project.
  • Net proceeds from the sale of both PPC Lime and PPC AQB are subject to adjustment
  • Group to release a further update on the restructuring and refinancing project on or about 29 September 2021

JSE-LISTED cement producer, Pretoria Portland Cement (PPC) has completed the disposal of PPC Lime Limited and PPC Aggregate Quarries Botswana Proprietary Limited (PPC AQB) to Kgatelopele Lime Proprietary Limited and a construction and mining company in Botswana respectively.

This comes after the Group reached an agreement earlier this year to dispose of PPC AQB as well as its lime business, for a consideration of R515 million (about US$35.7 million).

 “The board of directors of PPC is pleased to announce that the last of the Divestment Conditions was met on 17 September 2021 and the last of the conditions precedent relating to the sale of PPC AQB was met on 15 September 2021,” PPC said in a statement.

The completion of the sale is in line with the Group’s ongoing capital restructuring and refinancing project.

“The completion of the sale of PPC Lime and PPC AQB is an important and positive step in the ongoing capital restructuring and refinancing project. The net proceeds from the sale of PPC Lime and the proceeds from the sale of PPC AQB, both of which are subject to adjustment, will be applied to de-gear PPC’s South African balance sheet,” the Group said.

PPC advised its shareholders that the Group expects to release a further update on the restructuring and refinancing project as well as a trading update on or about 29 September 2021.

BACKGROUND INFORMATION ON THE ACQUIRER

Kgatelopele Lime is a private company, incorporated under the laws of South Africa, formed for the acquisition of PPC Lime. Its shareholders comprise IMR Resources South Africa Proprietary Limited, Kolobe Nala Investment Lime Proprietary Limited, HEX2M Energy Holdings Proprietary Limited, and JJJL Mining Proprietary Limited.

BACKGROUND INFORMATION ON PPC LIME

PPC Lime is a wholly-owned subsidiary of PPC which mines, manufactures, and distributes reactive lime, hard burnt lime, hydrated lime, burnt dolomitic lime, and raw limestone. It is a leading supplier of these products to key industries, including iron and steel, alloys, gold, uranium and copper mining, non-ferrous metals, sugar refining, water treatment, and flue gas desulphurisation.

BACKGROUND INFORMATION ON PPC AQB

PPC Aggregate Quarries Botswana (Pty) Ltd is a Private Limited Company that was established in 2011 in Gaborone, Botswana. The organisation operates in the mining sector.

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