Harare - Pretoria Portland Cement [JSE:PPC]
has signed away a 29.6% shareholding in its Zimbabwean subsidiary Portland Holdings Limited.
The signing ceremony was held on Monday afternoon at Meikles Hotel.
The transaction will result in the company becoming fully compliant with the country’s indigenisation regulations, as locals already own 21.4%.
Under the deal Gwanda and Umguza community share ownership trusts will get 10%, while an indigenous Special Purpose Vehicle will get 4.9% and the National Indigenisation and Economic Empowerment Fund 9.7%.
Employees will receive a 5% stake through a share ownership trust.
Portland Holdings is also set to invest at least US$200mn towards
construction of a new cement plant in Rushinga, Mash Central, the company
PPC group (SA) chief financial officer Tryphosa Ramano told Fin24 the
company had completed feasibility studies and some boreholes have been
drilled to determine the quality and quantity of the Rushinga limestone
“The size of the plant will only be determined by
the quality and quantity of the resource,” Ramano said.
“I can’t give you
much detail about the Rushinga plant, as we have to announce it in
South Africa first because we are listed on the JSE.”
Indigenisation Minister Saviour Kasukuwere said the
investment signifies the company’s commitment to the country.
PPC operates two plants in Zimbabwe, in Colleen Bawn and Bulawayo.
Its major competitor is Lafarge Cement.
PPC is listed on the Zimbabwe Stock Exchange and the JSE. Its shares are also fungible.