PPC declares special dividend of 33.5 cents after ...

PPC declares special dividend of 33.5 cents after Rwanda disposal

Nyashadzashe Ndoro

Chief Reporter

PPC has announced a special dividend of 33.5 cents per share, amounting to R521 million, following the disposal of its 51% interest in CIMERWA, Rwanda.

The dividend, approved by the Financial Surveillance Department of the South African Reserve Bank, will be paid from income reserves in the second quarter of Financial Year 2025.

The special dividend is subject to dividend withholding tax at a rate of 20%, resulting in a net dividend of 26.8 cents per share for those shareholders not exempt from paying dividend tax.

The relevant dates for the special dividend are: record date: Friday, 20 September 2024 and payment date: Monday, 23 September 2024.

Shareholders recorded in the company's register as at the record date will be entitled to the special dividend. Certificated shareholders will receive electronic payments, while dematerialised shareholders will have their accounts credited on the payment date.

The company has confirmed that it will satisfy the solvency and liquidity test immediately after the payment of the special dividend, in compliance with the Companies Act.

This special dividend declaration follows the finalisation of the CIMERWA disposal, which was announced on July 25, 2024. PPC has 1,553,764,624 shares in issue as of the date of the declaration.

PPC, a South Africa-based cement manufacturer, divested its stake for US$42.5 million to National Cement Holding Ltd, enabling the company to concentrate on its primary domestic market. The company said the move allowed it to capitalise on opportunities to enhance profitability and achieve a more sustainable return on investment in its core market.