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PPC, South Africa's largest cement manufacturer, has announced a R380 million empowerment deal that will hand a tenth of its domestic operations to qualifying employees.
A new PPC Employee Share Ownership Trust has purchased 10% of the share capital of PPC South Africa Holdings, the holding company through which PPC manages the group and conducts its South African cement and materials businesses, the group said in a statement.
All South African employees not currently participating in PPC’s long-term incentive program will be eligible, although participation will be weighted in favour of historically disadvantaged individuals, the group said, with the shareholder loan set to be repaid via dividends.
Until the loan amount and capitalised interest are repaid, qualifying employees will effectively receive 2.5% of any dividends declared by PPC SA Holdings, the group said, after which they will then receive 10%.
"PPC has been built upon the shoulders of its employees and this transaction provides a meaningful way of rewarding those in South Africa who do not participate in PPC’s long-term incentive plan to share in the creation of shareholder value," group CEO Roland van Wijnen said in the statement.
"We are pleased that the terms of the transaction are such that it stands to benefit employees for many years to come”.
PPC, valued at about R4.1 billion on the JSE, had 1 840 employees in SA as of its 2023 year, just over 70% of its total workforce. The company also operates in Botswana, Zimbabwe and Rwanda.
