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PPC LIMITED - PPC Enters into a Standby Underwriting Agreement

Release Date: 27/06/2016 08:38
Code(s): PPC     PDF:  
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PPC Enters into a Standby Underwriting Agreement

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

PPC ENTERS INTO A STANDBY UNDERWRITING AGREEMENT

Further to the announcement released by the Company on the Stock
Exchange News Service of the JSE Limited on 24 June 2016, confirming
that the Company had fulfilled all of the conditions precedent under
the Liquidity and Guarantee Facility Agreement required to give
effect to an irrevocable and unconditional guarantee in favour of
Noteholders of the Company’s outstanding notes, PPC now advises that
it has entered into a standby underwriting agreement in relation to
underwriting its proposed rights offer of R4 billion.

The Company is pleased to announce that it has mandated a syndicate
of banks comprising The Standard Bank of South Africa Limited,
Nedbank Limited, Absa Bank Limited and Rand Merchant Bank, a
division of FirstRand Bank Limited, (collectively the “Joint
Bookrunners”) to lead its proposed rights offer process.        The
Standard Bank of South Africa Limited has been appointed as Sole
Global Coordinator.

The   Joint  Bookrunners  have  provided  a  standby  underwriting
commitment of R4 billion in relation to the proposed rights offer.
This will be replaced by a formal underwriting commitment in due
course, subject to the satisfactory fulfilment of the conditions
precedent.

The Company continues to target the posting of a circular to
shareholders during the week of 27 June 2016 in order to convene a
shareholders’ extraordinary general meeting (“the EGM”), to approve
the necessary resolutions required to implement the proposed rights
offer, towards the end of July 2016.

Accordingly, a further announcement will be released providing
shareholders with the salient dates and times of the EGM as well as
further information relating to the proposed rights offer.

Darryll Castle, CEO of PPC said ”The execution of the irrevocable
and unconditional guarantee in favour of Noteholders as well as the
signing of the standby underwriting agreement are two major
milestones for PPC. These pave the way for the Company to resolve
its capital structure issues effectively, and focus its efforts on
implementing its strategy going forward.”

FURTHER CAUTIONARY ANNOUNCEMENT

Shareholders are advised to continue to exercise caution when
dealing in PPC securities until a further announcement in this
regard is made.

27 June 2016

Joint transaction sponsors
The Standard Bank of South Africa Limited
Nedbank Limited

Sponsor
Merrill Lynch South Africa (Pty) Limited

PPC:
Azola Lowan
Tel: +27 (0) 11 386 9000
Azola.Lowan@ppc.co.za

Financial Communications Advisor:
Instinctif Partners
Morne Reinders
Mobile : +27 (0) 82 325 1810
Morne.Reinders@instinctif.com

Louise Fortuin
Mobile: +27 (0) 71 605 4294
Louise.Fortuin@instinctif.com

Any securities which will be offered will not be and have not been
registered under the US Securities Act of 1933 ("US Securities Act")
and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration
requirements under the US Securities Act.

Date: 27/06/2016 08:38:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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