Shareholders in South Africa’s PPC on Monday overwhelmingly approved a proposal to issue additional shares for a planned 4 billion rand ($289 million) rights issue as the loss-making cement maker seeks cash to reduce debt.
PPC, which has pushed deeper into the rest of Africa as profit has slumped in its domestic market, is raising funds after a credit rating downgrade to “junk” status by ratings agency S&P.
The company proposed five resolutions, including the issuance of new shares, which were approved by virtually all shareholders who cast their votes at a special meeting.
Chief executive officer Darryll Castle said the approval from shareholders had prepared the ground work to make the rights offer possible.
“I think there’s reasonably high level of support for what we’re doing and for the need and necessity of it, and that’s what came through today,” Castle told Reuters.
PPC expects to complete the rights issue process during September, Castle added.