| Wed 13 Aug 2003, 14:52 | | PPC - Black Economic Empowerment |
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PPC
Pretoria Portland Cement Company Limited - Black Economic Empowerment for the
packaging industry
Pretoria Portland Cement Company Limited
Incorporated in the Republic of South Africa
(Registration Number 1892/000667/06)
("PPC")
JSE code: PPC
ISIN number: ZAE000005559
Media Release
For Immediate Release
Amended : 12 August 2003
Black Economic Empowerment for the packaging industry
Pretoria Portland Cement (PPC), the listed subsidiary of industrial brand
management company Barloworld, today announced that it has signed a Memorandum
Of Understanding with Nozala Investments for the possible sale of a majority
stake in its packaging subsidiary, Afripack.
The transaction is subject to a number of conditions, which remain to be
concluded and the process is expected to take two to three months. It is likely
to result in the majority stake in Afripack being held by Nozala Investments and
a portion being retained by the management of Afripack and PPC. PPC believes
that Afripack has a bright future and plans to retain at least a 25%
shareholding in Afripack.
Nozala Investments (Nozala) is a black empowerment women"s investment holding
company, established to facilitate and further the empowerment of women in
general and black women, in particular. Nozala has interests in Kumba
Resources, Exel Petroleum, The Fedics Group, Medi-clinic Corporation, Tsogo Sun,
the Education Investment Corporation and the SNO (Nexus).
This announcement comes shortly after PPC approved a R40-million upgrade to the
Afripack operation in Durban earlier this year. This expansion should increase
Afripack"s product offering and improve productivity once the equipment has been
commissioned later this year. The announcement also adds to a very successful
year in which Afripack won a Mondi Supplier of the Year Award, was awarded a
number of major tenders, achieved ISO 14001 accreditation and recently re-
launched its internal Kambuku project.
Afripack currently generates annual revenues of approximately R240-million and
employs over 200 people at its Durban-based manufacturing facility.
PPC executive director, Peter Nelson, said: "There were a number of reasons
behind our decision to enter into negotiations with a Black Economic Empowerment
partner. Afripack has grown since it became part of the PPC Group, and has
significantly expanded beyond the cement industry. The proposed transaction is
in line with our commitment to support the participation of previously
disadvantaged individuals in our economy. We also believe that empowerment
makes good business sense, if Afripack is to pursue its full growth potential in
the South African packaging industry."
Should the transaction be successfully concluded, PPC Cement would remain one of
Afripack"s largest customers. Notably, Afripack has also established long term
relationships with several leading South African companies such as Mondi, Sappi,
Sasol, Tiger, Premier Foods, Lafarge SA and Natal Portland Cement.
Afripack"s Managing Director, Arnold Vermaak, reiterated that it would be
business as usual at Afripack, and that the transaction with Nozala Investments
should further expand the business. He added that there should be no adverse
effect on the staff currently employed at Afripack and in all likelihood
Afripack should generate jobs over the long term.
Nozala Chairperson, Salukazi Dakile-Hlongwane, said that Nozala is excited about
the prospect of being part of one of the first substantial empowerment
transactions within the packaging industry and on partnering PPC and Barloworld
in this endeavour. Nozala"s main focus would be to strengthen existing
contracts and grow new market opportunities for Afripack.
Ends
Issued by : Andrea Visser
Meropa Communications
Tel : (011) 772-1000
On behalf of: PPC
Contact :
Peter Nelson - PPC - (011) 488-1700
Arnold Vermaak - Afripack - (031) 452-1300
Lorato Phalatse - Nozala Investments - (011) 463-0643
Date: 13/08/2003 02:40:08 PM Produced by the JSE SENS Department
