PPC’s $30m Zimbabwe property sale collapses

PPC’s sale of a property in Zimbabwe has fallen through after the prospective buyer failed to pay $30m by the agreed deadline, dealing a blow to the cement producer’s plans to unload noncore assets.

In a trading update on Wednesday, PPC said the sale of the Arlington property, held through its 88%-owned Zimbabwean subsidiary, to Transvaal Africa had lapsed after the buyer failed to pay by the end of June.

The deal had already shown signs of strain in February, when PPC told shareholders it had agreed with the buyer to push back the deadline to the end of June because “various administrative matters had delayed the meeting of certain milestones, giving the parties more time to complete the transaction”.

PPC will now have to resell the noncore asset as the group continues to reshape its portfolio and focus capital on its core cement business. It said it remains open to future offers for the property, “which it will consider on their merits”.

PPC Zimbabwe bought the 418ha property in 1990 but regained ownership only in December 2024 after it was seized by the Zimbabwean government in 2010. The land contains no limestone deposits and has no commercial use in the group’s cement business, prompting PPC to put it on sale.

In its results for the year to end-March, the group said group revenue rose 3.9% to R10.255bn, driven mainly by a 14.3% increase in Zimbabwe, while the South Africa and Botswana businesses reported a 0.4% decline.

PPC Zimbabwe reported an 18.2% increase in sales volumes, supported by its nationwide operational footprint and turnaround initiatives in a growing demand market, the group said.

PPC also received R490m in dividends from its Zimbabwe operations, though R105m was earmarked to secure a guarantee arrangement in South Africa linked to the business.