South Africa’s PPC has announced the sale of its lime operations to Kgatelopele Lime for ZAR515m (US$35.5m). The net proceeds from the divestment are part of PPC’s capital restructuring programme, with the net proceeds set to be used to de-gear its South African balance sheet.

"This divestment from our lime assets, which we consider non-core to our business, is timely and plays a vital role in our capital restructuring strategy to reduce our South African debt. This will support the South African business to reach a sustainable debt to EBITDA position which the South African lenders view as being necessary to remove the need for the originally contemplated rights issue at a group level. With the announcement of this divestment, we have completed another commitment in line with our communicated restructuring plan. Equally important, we consider Kgatelopele Lime to be well-placed to continue to develop and strengthen the position of the lime business in South Africa," said Roland van Wijnen, CEO.

Kgatelopele Lime was formed to acquire PPC Lime and has IMR South Africa as a key shareholder. The transaction is expected to close by the end of the year, subject to certain conditions.