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PPC - Pretoria Portland Cement Company Limited - Acquistion of Pronto Holdings

Release Date: 19/03/2012 15:50
Code(s): PPC
Wrap Text

PPC - Pretoria Portland Cement Company Limited - Acquistion of Pronto Holdings Pretoria Portland Cement Company Limited Incorporated in the Republic of South Africa (Registration number 1892/000667/06) JSE Share code: PPC ZSE share code: PPC ISIN: ZAE000096475 ("PPC" or the "Company") ACQUISTION OF PRONTO HOLDINGS PPC is pleased to advise that the acquisition of Pronto Holdings (Pty) Limited (Pronto) that was announced during November 2011, has been unconditionally approved by the Competition Commission. Through this acquisition PPC will become a supplier to the Gauteng markets for ready mix concrete and fly ash. Fly ash is used as an extender in the manufacture of cement and concrete. The purchase consideration will be calculated as 5.6 times Pronto`s EBITDA less net debt. A first tranche of 25% will be paid at initiation; a second tranche of 25% after one year and the remaining 50% at the conclusion of the second year. Based on Pronto`s unaudited results to year end, February 2012, the initial tranche will be approximately R70 million. Although subsequent payments are planned to increase, the total purchase consideration is not expected to exceed R400 million. Paul Stuiver, CEO of PPC commented "This will be a value-adding transaction for shareholders and customers of both Pronto and PPC". Sandton 19 March 2012 Sponsor Merrill Lynch South Africa (Pty) Limited Date: 19/03/2012 15:50:08 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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