PPC considers R1,25 billion rights issue
Regional cement producer, Pretoria Portland Cement (PPC), is considering a rights issue of about R1,25 billion to refinance both its domestic and international operations.
The 128-year-old business is struggling to manage a slump in demand for cement in South Africa amid an inflow of cheaper imports even before efforts to contain the coronavirus outbreak hampered building projects.
It has footprint in Zimbabwe among other African markets. While SA President Cyril Ramaphosa has identified privately funded infrastructure projects as key to an economic revival, the plan is at an early stage and is unlikely to affect PPC’s looming debt deadlines, close sources say.
The shares have slumped by 66 percent in 2020, valuing the cement maker at R1,3bn.
A spokesperson for PPC said the company will provide an update on capital restructuring plans when appropriate. RMB, Nedbank and Standard Bank all declined to comment.
The cement maker has hired Gleacher Shacklock to seek more favourable terms for debt in the Democratic Republic of the Congo (DRC), close sources said. — Bloomberg/Business Day.