PPC LIMITED - Cash inflow of R1bn following conclusion of compulsory subscription agreements of PPCs 1st BEE Transaction

Cash inflow of R1bn following conclusion of compulsory subscription agreements of PPC’s 1st BEE Transaction

PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE Code: PPC
ISIN: ZAE 000170049
("PPC" or the "Company")

CASH EQUITY INFLOW OF R1 BILLION AND REDUCTION IN ISSUED STATED CAPITAL
FOLLOWING CONCLUSION OF COMPULSORY SUBSCRIPTION AGREEMENTS OF PPC’S FIRST
B-BBEE TRANSACTION

Following the conclusion of the Strategic Black Partners (“SBPs”) and
Community Service Groups (“CSGs”) components of PPC’s 2008 Broad-Based
Black Economic Empowerment (“B-BBEE”) transaction, as amended, PPC advises
that the SBPs and CSGs have subscribed for 15,6 million shares as part of
the compulsory subscription agreements. Consequently, the Company received
R1 billion on 15 December 2016. Simultaneously, PPC bought back and
cancelled 48,6 million shares at 10 cents per share. The above transaction
resulted in the net stated capital reducing by 33 million shares to 1 591
million shares.

The Company will use the R1 billion to further reduce its debt and fund
capital expenditure, in particular, relating to the Slurry kiln 9 project.

The conclusion of this transaction has, however, reduced the Company’s
empowerment credentials. Work to design and implement a new B-BBEE (BEE
III) transaction is progressing well and will be communicated to
shareholders in the first half of the 2017 calendar year.

17 January 2017

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

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