Johannesburg, Mar 19 (I-Net Bridge) - Pretoria Portland Cement (PPC) advised on Monday that the Competition Commission has unconditionally approved its bid to acquire Pronto Holdings.
Through this acquisition PPC will become a supplier to the Gauteng markets for ready mix concrete and fly ash, which is used as an extender in the manufacture of cement and concrete.
According to the company, the purchase consideration will be calculated as 5.6 times Pronto's EBITDA less net debt.
A first tranche of 25% will be paid at initiation; a second tranche of 25% after one year and the remaining 50% at the conclusion of the second year.
Based on Pronto's unaudited results to year end, February 2012, the initial tranche will be approximately R70 million.
"Although subsequent payments are planned to increase, the total purchase consideration is not expected to exceed R400 million," the company said.
Paul Stuiver, CEO of PPC, commented: "This will be a value-adding transaction for shareholders and customers of both Pronto and PPC."
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