Bloomberg are reporting that PPC Ltd. shares plunged after the South African cement maker announced that it was preparing a capital raising of as much as US$256 million, while adding that talks with a credit-ratings agency will probably lead to a downgrade of the company.
The company stock declined as much as 16%, which on a closing basis would be the biggest drop on record, and traded 11% lower at 12.15 rand on Monday. The shares are down 21% for the year, compared with a 3% gain on the FTSE/JSE Africa All Share Index.
The proceeds of the 3 billion rand to 4 billion rand capital raising will be used to reduce debt and fund expansion plans.
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