PPC’s US$30m Arlington deal collapses

STAFF WRITER

Cement manufacturer Pretoria Portland Cement (PPC) Zimbabwe has suffered a setback in its asset disposal programme after the planned US$30m sale of its Arlington Estate collapsed when the prospective buyer, Transvaal Africa (Private) Limited, failed to meet the final payment deadline.

The failed transaction derails PPC Zimbabwe’s efforts to monetise non-core assets and unlock capital from a property that has no strategic value to its core cement manufacturing operations.

PPC Zimbabwe first announced plans in August 2025 to dispose of the 418-hectare Arlington Estate, but completion of the transaction was delayed by legal processes involving the Government. The buyer was subsequently granted a further extension in February 2026 to conclude the purchase.

However, on Wednesday, the company confirmed that the purchaser had again failed to honour its payment obligations.

“…payment by the Purchaser of the Disposal Consideration did not occur by June 30, 2026 and, accordingly, the Disposal Agreement has lapsed,” PPC said.

The company said the Arlington property remains a non-core asset and that it will consider any fresh acquisition proposals on their merits.

PPC Zimbabwe’s South Africa-listed parent, PPC Limited, had previously indicated that the disposal did not constitute a related-party transaction.

PPC Zimbabwe acquired the Arlington Estate in 1990. The land is zoned for residential, industrial and commercial development but contains no limestone deposits, making it unsuitable for the company’s cement production business.

As a result, the company resolved to dispose of the property at fair market value as part of its broader strategy to streamline its asset portfolio.