Lime sale eases pressure on PPC

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Lime sale eases pressure on PPC

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Published Date: 2021-05-04 | Source: Stephen Gunnion | Author: Stephen Gunnion

Lime sale eases pressure on PPC

The cement producer may not need not need to raise capital from shareholders as it strengthens its balance sheet.

PPC Limited has sold its lime business as it continues to make progress with a restructuring and refinancing project aimed at reducing debt and strengthening its balance sheet. Its shares rose over 10% at their best.

The company sold PPC Lime to Kgatelopele, a consortium that includes IMR Resources South Africa, part of private international commodities company IMR Group; as well as black owned mining investment companies Kolobe Nala Investment Lime and HEX2M Energy Holdings; and JJCL Mining, an entity owned by former PPC CEO Johannes Claassen. It said Claassen had an in-depth understanding of PPC Lime and its operations.

Following the conclusion of the sale, PPC Lime is expected to be 39% black-owned, with 29% in the hands of the new black investors, 5% owned by relevant PPC Lime employees and 5% by host communities of PPC Lime.

PPC Lime mines, manufactures and distributes reactive lime, hard burnt lime, hydrated lime, burnt dolomitic lime and raw limestone. As part of a revised strategy, PPC Lime was identified as a non-core business.

As part of its capital restructuring, Small Talk Daily Research analyst Anthony Clark said there were a combination of factors that had to be put in place including the sale of PPC Lime, the restructuring of its African operations and the potential disposal of all or part of PPC's assets in the DRC and other territories.

PPC's shares closed 9.7% up at R3.28 yesterday.





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