PPC complies with indigenisation rules

In a statement yesterday, PPC said it had been awarded with a compliance certificate for Portland Holdings Limited (PHL), the wholly-owned subsidiary incorporating its operations in Zimbabwe.

“The indigenisation certificate acknowledges PHLs compliance with both the spirit and the letter of the Zimbabwean Indigenisation and Economic Empowerment Act,” said the firm.

The cement producer said the transaction        follows a series of engagement with the Government.

“Through PPC’s secondary listing on the Zimbabwe Stock Exchange and an existing PHL Employee Share Ownership Option Plan, PHL was deemed to have a pre-existing indigenous shareholding of 21,4 percent. To comply with the legislative requirements, an additional 29,6 percent equity in PHL will be sold to four indigenous parties.”

The PPC Special Community Trust will be issued with a 10 percent equity interest in PHL.

The trust will benefit communities within the surrounding area of PHL’s existing and future operations.

The initial beneficiaries of the trust will be the Gwanda and Umguza Rural District Councils share ownership trusts.

The National Indigenisation and Economic Empowerment Fund will be issued with a 9,7 percent equity interest in PHL while the Employee Share Ownership Plan would be issued a five percent equity.

It is hoped that the Employee Share Ownership Plan will benefit future qualifying employees.

The Strategic Equity Partners will be issued with a 4,9 percent share in the company.

“PHL’s Strategic Equity Plan will initially consist of three current non-executive directors of PHL who are indigenous Zimbabweans.

The empowerment plan cost about $6,2 million.

PHL plans to make a further $3 million cash donation to the PPC Special Community Trust              in order to speed up community development projects.

PPC chief executive officer Mr Paul Stuiver said: “We believe that our plan is both practical and in the spirit of true indigenisation and economic empowerment.

“We see the Zimbabwe market as an exciting growth opportunity and expect our operations to approach full capacity over the next two to three years. This opens up further investment opportunities for PPC in Zimbabwe.”