Portland Holdings Limited, a subsidiary of Pretoria Portland Cement (South Africa) will sell a seven percent stake worth R62 million or US$7 million to the Black Economic Empowerment.

PPC, the biggest cement maker in the region is disposing of 15 percent stake worth R2, 7 billion or US$350 million.

The deal is expected to bring in foreign currency into the country while empowering over 3, 5 mainly black South African citizens.

The Reserve Bank of Zimbabwe has already approved the transfer of 2 million shares to South Africa and each share will be sold for R31.

This will bring in about R62 million here.

According to sources, R31 million would be paid directly to shareholders while the remainder would be bought by the RBZ for its "national programmes" at the exchange rate "to be determined."

"The central bank has approved transfer of 2 million shares to SA," said a source close to the deal.

"It is an arrangement whereby half of the proceeds from the sale will be paid directly to people (shareholders) while the other half will be taken by the Reserve Bank of Zimbabwe for national programmes.

"Shareholders will then receive their remaining funds in local currency from the central bank at a rate yet to be determined."

In total, PPC has 27 million issued shares in Zimbabwe and South Africa.

Under the black empowerment deal, the largest parcel of shares at eight percent of ordinary shares will be allocated to employees, an education trust, a construction association trust and to community service groups. Strategic partners will be allocated 7 percent.

The PPC, established as South Africa’s first cement plant in 1992 and listed on the Johannesburg Stock Exchange in 1910, has capacity to produce more than six million tonnes of cement products annually.

It has eight manufacturing facilities and deposits in South Africa, Botswana and Zimbabwe.