New South African employee share ownership trust launched

PPC, a JSE-listed cement and construction materials producer, has launched the PPC Employee Share Ownership Trust.

1. The trust has acquired 10% of the share capital of PPC South Africa for the benefit of employees of PPC’s subsidiaries in the country.
2. The shares were purchased for R380 million as a way to recognize and reward employees and contribute to South Africa’s equity ownership targets.
3. The trust replaces previous equity ownership schemes and aims to provide qualifying employees with ongoing benefits throughout their employment.
4. All South African employees not currently participating in PPC’s long-term incentive program will be eligible, with a focus on historically disadvantaged individuals in line with BBBEE targets.
5. The transaction is expected to enhance PPC’s BBBEE status and improve the company’s rating to level 1. It closed on August 4.
6. The purchase price of R380 million will be funded through a PPC loan, which will be repaid through future dividends declared by PPC South Africa to the trust.
7. Qualifying employees will receive a portion of the dividends, with 25% distributed to beneficiaries of the trust and 75% allocated to PPC for loan repayment until the loan is fully repaid. Afterward, qualifying employees will receive 10% of the dividends declared by PPC South Africa.