PPC LIMITED - Restructuring and refinancing project update and renewal of cautionary announcement

Restructuring and refinancing project update and renewal of cautionary announcement

PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number 1892/000667/06)
JSE ISIN: ZAE000170049
JSE code: PPC ZSE code: PPC
(“PPC” or “Company” or “Group”)



RESTRUCTURING AND REFINANCING PROJECT UPDATE AND RENEWAL OF CAUTIONARY ANNOUNCEMENT

Shareholders of the Company are referred to the previous cautionary announcements
released on the Stock Exchange News Service, including the Renewal of Cautionary
Announcement released on 15 January 2021, wherein they were advised that PPC is
undertaking a restructuring and refinancing project (“Project”) with the objective
of implementing a sustainable capital structure and improving the investment
prospects of the Group.


PPC is able to report that it continues to make positive progress against key
milestones on the Project.


•   In South Africa, all conditions precedent relating to the renewal of short and
    long term facilities with its South African lenders, including the registration
    of security, have been fulfilled. Agreed facilities provide adequate headroom
    for the South African operations’ ongoing requirements.


•   In the DRC, substantive negotiations continue with the DRC Lenders to implement
    a sustainable capital structure for PPC Barnet (DRC) and to remove any recourse
    to PPC Ltd for the provision of deficiency funding to these operations.                 The
    negotiations   are   being   conducted   under   the   terms   of   a   formal   standstill
    agreement, which is effective until 31 March 2021. PPC and the DRC Lenders
    target resolution of the matter ahead of 31 March 2021.


•   The process to raise capital in PPC International continues, with expressions
    of interest received from various parties being considered.


•   The structured sales process for PPC Lime is ongoing, with a number of non-
    binding offers received at the end of January 2021 and short-listed parties
    progressing to due diligence. PPC continues to target deal certainty by the end
    of March 2021.


As previously disclosed, subject to the resolution of its DRC exposure, PPC has
committed to an equity capital raise by 31 March 2021 in order to de-gear its South
African balance sheet. Whilst positive progress is being made on the Project, PPC
will be formally engaging with its South African lenders to extend the timing of
the capital raise by three months to the end of June 2021, when certainty on the
key elements of the restructuring is expected.


Shareholders are therefore advised to continue to exercise caution when dealing
in securities of PPC until the funding arrangements with its respective lenders
are finalised and details of the proposed restructuring and refinancing are
published.


Sandton
25 February 2021



Sponsor
Sasfin Capital

Financial Communications Advisor:
Instinctif Partners
Louise Fortuin
Mobile: +27 71 605 4294

Date: 25-02-2021 10:00:00
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