Reports from Johannesburg indicate that the leading cement supplier in Africa’s largest economy, Pretoria Portland Cement is to part with 6.5 percent stake of its shares, in a $133.4 million estimated deal, to meet the South African government’s affirmative action rules.

According to PPC, the deal, which would take shareholding by black investors in its domestic operations to 26 percent, will enable it meet the rules set out by the government. The deal is the second of its kind in four years and would favour the cement maker’s staff and black investors.

On Thursday, JSE-listed PPC said it would cancel about 20 million treasury shares it bought back to help counter the dilutive effect of the new 39.3 million shares to be issued for the transaction, with the company’s 2,400 indigenous employees issued 68 percent of the new shares and existing and new women groups set to take up the rest.

As part of the South African government’s drive to close the economic gap between the white minority business overlords and the black majority, companies in Africa’s largest economy have been compelled to meet quotas on black ownership, employment and procurement.

The deal’s estimated 1.1 billion rand ($120 million) value is based on the 30-day volume-weighted average price of PPC shares of 27.39 rand ($3.3) per share as of Monday, July 9, Reuters reported.

Pretoria Portland Cement is the cement market leader in South Africa; with eight manufacturing facilities and three milling depots in South Africa, Botswana and Zimbabwe, whose combined output translate to more than seven million tons of cement yearly.