PPC Zimbabwe disposes of Arlington property for US$27 million

JSE-listed PPC, through its 88%-held subsidiary PPC Zimbabwe (PPCZ), has disposed the Arlington Estate, a 418 ha vacant immovable property in Harare, Zimbabwe.

The Arlington property was disposed of for a gross cash consideration of $27-million, generating net proceeds of $21.4-million after transaction-related costs and applicable taxes.

Following the disposal, PPCZ declared and paid a dividend of $21.4-million.

PPC’s 88% share of the dividend, net of applicable taxes, amounted to $17.9-million, or about R296.4-million.

The Arlington property does not contain any limestone deposits and PPCZ has no commercial use for it in the core cement producing business. The disposal is therefore deemed to be in the best interest of the group.