You are currently viewing our desktop site, do you want to visit our Mobile web app instead?

PPC prices $281m rights issue at R4 a share

Rights offer remains on track for completion during September.

JOHANNESBURG – South Africa’s PPC priced its R4 billion ($281.5 million) rights issue at a 55.5% discount on Wednesday as the cement maker fights for survival in the face of depressed domestic growth.

PPC said it would sell 1 billion shares at R4 each to its shareholders, well below the stock’s closing price of R8.99 on Aug. 19. The shares, which have slipped 42% this year, closed down 3% at R8.73 on Wednesday.

Battered by a weak domestic economy and a credit rating downgrade to junk status, PPC said in May it planned to raise the money to reduce debt levels and fund existing expansion capital expenditure and investment projects.

PPC said the rights offer remained on track for completion during September.

The firm, founded in 1892, will use the net proceeds of the rights offer to repay debt funders for a guarantee extended to PPC bondholders, outstanding amounts advanced by the banks under other finance facilities and to finance existing projects.

($1 = 14.2100 rand) (Reporting by Nqobile Dludla

Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.

COMMENTS   0

You must be signed in to comment.

SIGN IN SIGN UP

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

NEWSLETTERS WEB APP SHOP PORTFOLIO TOOL TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: