PPC says it has received US$17.9 million, or about R296.4 million, from its Zimbabwean subsidiary after the sale of vacant land in Harare.
The JSE-listed cement producer disclosed the completed transaction on Tuesday, 27 October. The payment went to PPC itself; the announcement did not declare a dividend for shareholders in the listed company.
PPC Zimbabwe, which is 88% owned by the group, sold the approximately 418-hectare Arlington Estate for US$27 million in cash. The company said the land has no limestone deposits and no commercial use in its core cement business.
The transaction therefore concerns unused property, rather than the sale of an operating cement plant.
From sale proceeds to parent-company cash
Transaction costs and taxes left PPC Zimbabwe with US$21.4 million. It declared and paid that amount as a dividend. PPC’s share, after applicable taxes, came to US$17.9 million.
The R296.4 million equivalent is the conversion given in the company’s announcement, not a current market exchange-rate quote.
PPC did not specify the dates of the property transfer or dividend payment. Tuesday’s release confirms the disposal and payment have happened, but does not establish that either occurred that morning.
The buyer is a privately held Zimbabwean company associated with property holdings, according to PPC, which said the purchaser is not a related party.
PPC said the disposal is below the JSE’s category 2 transaction threshold and that its announcement was for information purposes.
The statement did not set out how the parent company intends to use the money received.
