According to Engineering News, South Africa‘s PPC shareholders on Monday overwhelmingly approved the company’s proposal to raise up to R4-billion ($289-million) in a share 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 proposed R3.5-billion to R4-billion rand cash call was approved by virtually all PPC shareholders who cast their votes at a special meeting.
CEO 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 offer process by September, Castle added.
