Canada’s Fairfax offers $154 mln for 22 % of South Africa’s PPC

JOHANNESBURG    – Canada’s Fairfax Africa Holdings has offered to buy 22 percent of South African cement maker PPC Ltd for 2 billion rand ($154 million), a cash injection aimed at strong-arming the debt-laden company into a tie-up with its nearest unlisted rival AfriSam.

In August, PPC said Afrisam intends to make a new proposal on a merger of the two South African cement makers after AfriSam terminated its current plan.

Fairfax, through its regional unit, said the offer to buy into PPC, at 5.75 rand per share, was subject to the PPC board recommending it as fair and reasonable and its shareholders voting in favour of AfriSam’s bid, PPC said on Monday

The Fairfax offer is also subject to the completion of an all-share merger between Afrisam and PPC that values PPC at about 9.2 billion rand, or 5.75 rand per share, and AfriSam at an enterprise value of 7.5 billion rand.

But PPC independent board, created to assess the Afrisam merger, was of the view that the proposal “fundamentally undervalues PPC”.

Related Story:  NSE market indices bow to profit taking, shed 0.61%

PPC also said it had received other offers from trade bidders, one of whom included a potential cash component, to create a pan-African cement giant. It did not name the bidders, saying the talks are confidential.

It added that the proposals were “credible and potentially value-enhancing for shareholders to merit careful consideration.”

With around 5 billion rand in net debt and about 1 billion rand in cash, PPC did not declare a dividend in the year to end of March, saying it needed the money to pay down borrowings jacked up by years of expansion elsewhere on the continent.

The merger, if it happens, would create a group with more financial muscle that would be able to compete globally, with assets across six African countries.

AfriSam, which is majority owned by the Public Investment Corporation pension fund, first proposed a merger in 2014 when PPC’s share price had been under pressure due to infighting between its board and former chief executive.

($1 = 12.9520 rand)(Reuters)

MTN News Alert
DMON
To receive our mobile newspaper on MTN delivered on your phone, text SAWD to 4900 at N50 per week or SAMD to 4900 at N150 per month.
For information on press releases, photos, promotional events and adverts, call or send text to 08173460599 or 08094208271or send email to: info@sundiatapost.com

Leave a Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

*

Sundiata Post Media Ltd.

Address: 3rd Floor Office Suite, Bayelsa State Guest House, Plot 1038, Shehu Shagari Way, Maitama, Abuja, Nigeria.
Tel: +234(0)92900705, +234(0)8173460599
Whatsapp: +234(0)8053069436
BBM PIN: 5619150D
Email: info@sundiatapost.com
Website: www.sundiatapost.com

Enugu Regional Office: SW 1 New Haven Shopping Mall, Enugu, Enugu State, Nigeria.
Tel: +234(0)7062582838
https://twitter.com/sundiatapost/

London Office: 18 Belgrave Avenue, Wd18 7UE, Watford, United Kingdom.
Tel: +447417554143
Dubai Office: PAU Management Suite, Level 23 - Boulevard Plaza Tower 2, Emaar Boulevard,
P. O. Box 124342, Dubai, UAE.
Tel: +971 4 4096849 | Fax: +971 4 409 6850
About Us

SundiataPost is published by Sundiata Post Media Limited, Sundiata Post is Nigeria’s most authoritative online newspaper and ranks among the top five online news platforms in Nigeria.

Guild of Corporate online publishers
ACCREDITED MEMBER
A Glance at Our Advert Rate.

Inside Pages

Size In Pixels - Amount

120×180 - N27,967.50

300×100 - N24,695

Text Link - N11,275

More Details info

About Us | Contact Us | Privacy Policy | Terms of Use | Advert Rate