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Shareholders in South
Africa's PPC on Monday overwhelmingly approved a proposal to issue additional
shares for a planned 4 billion rand ($289 million) rights issue as the
loss-making cement maker seeks cash to reduce debt.
PPC, which has pushed deeper
into the rest of Africa as profit has slumped in its domestic market, is
raising funds after a credit rating downgrade to "junk" status by
ratings agency S&P.
The company proposed five
resolutions, including the issuance of new shares, which were approved by
virtually all shareholders who cast their votes at a special meeting.
Chief executive officer
Darryll Castle said the approval from shareholders had prepared the ground work
to make the rights offer possible.
"I think there's
reasonably high level of support for what we're doing and for the need and
necessity of it, and that's what came through today," Castle told Reuters.
PPC expects to complete the
rights issue process during September, Castle added.
Credit:CNBC Africa
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