By a Correspondent
PRETORIA Portland Cement (PPC) says a number of entities have approached the South African-headquartered cement producer seeking to buy parts of its business amid growing speculation that the company wants to sell its Zimbabwean subsidiary for US$200 million.
The speculation was triggered by media reports in South Africa indicating that the group would use the money to settle its debt in South Africa, which was believed to be at R1,5 billion from September 2022.
South African media also indicated that, after news of the reported sale, PPC’s share price shot up by 24 percent at the Johannesburg Stock Exchange (JSE) this week, taking the company’s market value to R4,8 billion ($274 million).
However, in a statement on Wednesday, PPC was non-committal on the reported deal.
“PPC notes the recent media speculation regarding the possible sale of its subsidiary, PPC Zimbabwe. PPC regularly receives unsolicited approaches for various parts of its businesses, including PPC Zimbabwe, from a wide range of parties.
“PPC’s board has a duty to assess any such approaches on their respective merits and in line with its commitment to safeguard and enhance value for stakeholders,” reads the statement.
“Any material developments on these unsolicited approaches will be shared with the market via official channels, as required by applicable regulations. PPC Zimbabwe forms an integral part of PPC’s Southern Africa footprint, and the business continues to focus on providing customers with high-quality cement to support the development of Zimbabwe.”
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