PPC, a JSE-listed cement and construction materials producer, has launched the PPC Employee Share Ownership Trust.
- 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.
- The shares were purchased for R380 million as a way to recognize and reward employees and contribute to South Africa’s equity ownership targets.
- The trust replaces previous equity ownership schemes and aims to provide qualifying employees with ongoing benefits throughout their employment.
- 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.
- The transaction is expected to enhance PPC’s BBBEE status and improve the company’s rating to level 1. It closed on August 4.
- 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.
- 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.