portland gears for bee rating
Pretoria Portland Cement yesterday announced that it would sell a 15percent stake worth R2,7billion to black groupings, strategic partners and its staff in a bid to become BEE compliant.
John Gomersall, chief executive of PPC, said the transaction would directly benefit an estimated 3,5million people.
He said the company would issue 8,5percent new shares to the strategic black partners and community service groups.
PPC employees will be allocated 1,07percent of the shares, while black managers will get 1,83percent.
The company has four strategic black partners, namely: Nozala, Peu, iLima Portland Consortium and Capital Edge Cement Consortium.
Nozala is a broad-based women's empowerment group, formed in 1996 to take up a 50percent stake in PPC's subsidiary Afripack.
ILima Portland Consortium is led by Mandla Gantsho, former chief executive officer of the Development Bank of Southern Africa, while the Capital Edge Cement Consortium is led by Business Unity SA chief executive officer Jerry Vilakazi.
The funding for the community and strategic partners components of the deal valued at about R1,5billion was underwritten by Standard Bank.
Two community service groups, Shalamuka Foundation and the Disability Empowerment Concerns Trust, have together raised R5,4million of their own money to buy a 0,75percent stake each.
Gomersall said PPC's objective was to achieve a level 4 empowerment rating in terms of the Broad Based Black Economic Empowerment Codes of Best Practice by next year.
The deal is still to be approved by shareholders.