PPC postpones rights issue

PPC Ltd., South Africa’s biggest cement maker, held off on a planned rights issue of about R750 million ($640 million) following a sales boost and advancing talks on the disposal of its lime business.

The Johannesburg-based company negotiated with lenders to postpone a share sale for at least six months, Chief Executive Officer Roland Van Wijnen said by phone on Wednesday. The group saw double-digit cement-revenue growth in its home market from the middle of last year, enabling it to meet interest payments, he said.

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PPC will also gain additional clarity on its lime division, which could generate further proceeds, the CEO said.

The 128-year-old business was facing the prospect of financial distress during South Africa’s hard lockdown a year ago, but a rebound in demand in subsequent months has seen a reversal in fortunes. President Cyril Ramaphosa has also identified privately funded infrastructure projects as key to South Africa’s economic revival, indicating market conditions could remain positive.

PPC shares rose 18% as of 3:06 p.m. in Johannesburg to R2.40, close to 14-month highs.

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Source: moneyweb.co.za