Pretoria Portland Cement to sell stake for $133 million
Pretoria Portland Cement (PCC) is to sell a 6.5 per cent stake to its staff and black investors in a deal worth about $ 133.4-million.
It is the second in four years deal to meet South Africa's affirmative action rules which would take shareholding by black investors in its domestic operations to 26 per cent and enable it meet the rules set out by the government.
Companies in South Africa have to meet quotas on black ownership, employment and procurement as part of a government drive to shift more of the mostly white-controlled economy into the hands of the black majority.
Johannesburg-based PPC said on July 12 that it would cancel about 20-million treasury shares it bought back to help counter the dilutive effect of the new 39.3-million shares to be issued for the transaction.