- PPC achieved a BBBEE level 4 (from level 8 under the 2007 codes of good practice) rating under the revised codes of good practice in December 2016, a year ahead of plan (April 2018)
- Maintaining a favourable BBBEE rating
- Improving black ownership in line with the revised codes and mining charter targets
|Overall BBBEE score||109||85,85|
|Enterprise and supplier development – preferential procurement||25||21,75||87,00|
|Enterprise and supplier development||15||15,00||100||No|
|BBBEE status level||Level 4|
|Black ownership||13,79% black ownership; 6,01% black women ownership|
|BEE procurement recognition||100%|
After completing PPC’s R4 billion rights offer on 16 September2016, the group’s BBBEE ownership credentials declined. The rights offer raised capital to strengthen our balance sheet and fund expansionary growth projects, but as the number of issued shares rose from 625 million to 1 625 million, the company’s empowerment credentials were significantly diluted.
Following maturity of the 2008 BBBEE transaction, strategic business partners (SBPs) and community service groups (CSGs) subscribed for 15,6 million shares under compulsory subscription agreements, and the company received R1 billion on 15 December 2016. Simultaneously, PPC bought back and cancelled 48,6 million shares at 10 cents each. This transaction reduced net stated capital by 33 million shares to 1 591 million shares, further reducing our empowerment credentials.
Work to design and implement a new BBBEE (BEE III) transaction is progressing well and will be communicated to shareholders in the second half of calendar 2017.