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Pretoria Portland Cement Company Limited - Black Economic Empowerment for the

Release Date: 13/08/2003 14:40
Code(s): PPC
Wrap Text

Pretoria Portland Cement Company Limited - Black Economic Empowerment for the packaging industry Pretoria Portland Cement Company Limited Incorporated in the Republic of South Africa (Registration Number 1892/000667/06) ("PPC") JSE code: PPC ISIN number: ZAE000005559 Media Release For Immediate Release Amended : 12 August 2003 Black Economic Empowerment for the packaging industry Pretoria Portland Cement (PPC), the listed subsidiary of industrial brand management company Barloworld, today announced that it has signed a Memorandum Of Understanding with Nozala Investments for the possible sale of a majority stake in its packaging subsidiary, Afripack. The transaction is subject to a number of conditions, which remain to be concluded and the process is expected to take two to three months. It is likely to result in the majority stake in Afripack being held by Nozala Investments and a portion being retained by the management of Afripack and PPC. PPC believes that Afripack has a bright future and plans to retain at least a 25% shareholding in Afripack. Nozala Investments (Nozala) is a black empowerment women"s investment holding company, established to facilitate and further the empowerment of women in general and black women, in particular. Nozala has interests in Kumba Resources, Exel Petroleum, The Fedics Group, Medi-clinic Corporation, Tsogo Sun, the Education Investment Corporation and the SNO (Nexus). This announcement comes shortly after PPC approved a R40-million upgrade to the Afripack operation in Durban earlier this year. This expansion should increase Afripack"s product offering and improve productivity once the equipment has been commissioned later this year. The announcement also adds to a very successful year in which Afripack won a Mondi Supplier of the Year Award, was awarded a number of major tenders, achieved ISO 14001 accreditation and recently re- launched its internal Kambuku project. Afripack currently generates annual revenues of approximately R240-million and employs over 200 people at its Durban-based manufacturing facility. PPC executive director, Peter Nelson, said: "There were a number of reasons behind our decision to enter into negotiations with a Black Economic Empowerment partner. Afripack has grown since it became part of the PPC Group, and has significantly expanded beyond the cement industry. The proposed transaction is in line with our commitment to support the participation of previously disadvantaged individuals in our economy. We also believe that empowerment makes good business sense, if Afripack is to pursue its full growth potential in the South African packaging industry." Should the transaction be successfully concluded, PPC Cement would remain one of Afripack"s largest customers. Notably, Afripack has also established long term relationships with several leading South African companies such as Mondi, Sappi, Sasol, Tiger, Premier Foods, Lafarge SA and Natal Portland Cement. Afripack"s Managing Director, Arnold Vermaak, reiterated that it would be business as usual at Afripack, and that the transaction with Nozala Investments should further expand the business. He added that there should be no adverse effect on the staff currently employed at Afripack and in all likelihood Afripack should generate jobs over the long term. Nozala Chairperson, Salukazi Dakile-Hlongwane, said that Nozala is excited about the prospect of being part of one of the first substantial empowerment transactions within the packaging industry and on partnering PPC and Barloworld in this endeavour. Nozala"s main focus would be to strengthen existing contracts and grow new market opportunities for Afripack. Ends Issued by : Andrea Visser Meropa Communications Tel : (011) 772-1000 On behalf of: PPC Contact : Peter Nelson - PPC - (011) 488-1700 Arnold Vermaak - Afripack - (031) 452-1300 Lorato Phalatse - Nozala Investments - (011) 463-0643 Date: 13/08/2003 02:40:08 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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