South Africas PPC shareholders approve rights issue

South Africa’s PPC shareholders on Monday overwhelmingly approved the company’s proposal to raise up to 4 billion rand ($289 million) in a share 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 proposed 3.5-4 billion rand cash call was approved by virtually all PPC 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 offer process by September, Castle added.