JOHANNESBURG. – PPC shares crashed as much as 22 percent to their lowest level in more than 10 years yesterday, dealing a blow to the cement maker’s plans to shore up its balance sheet. PPC said earlier it planned to raise up to R4 billion to provide for its 2016 and 2017 debt maturity profile and to put the company in a good position to execute its strategy.The company is expanding aggressively into other parts of the African continent, where it aims to generate 40 percent of its total revenue.

So far, the bulk of its revenue and earnings come from SA, where trading conditions remain tough and competition stiff.

Details of whether this involved a rights offer would be announced when it released its financial year end results on June 14, it said.

PPC said its capital raising would probably result in a credit rating downgrade “arising from its current and ongoing engagement with a particular credit ratings agency”.

Analysts said the market was also worried the money would be raised through a rights offer, which would be at big discount.

The stock was off 16.62 percent to R11,44 in late trade, giving the company a market cap of R6,9 billion. – BDLive.

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