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UPDATE 1-South Africa's PPC sees higher offer from Fairfax
September 15, 2017 / 2:23 PM / 3 months ago

UPDATE 1-South Africa's PPC sees higher offer from Fairfax

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JOHANNESBURG, Sept 15 (Reuters) - PPC, South Africa’s biggest cement producer, said on Friday it expected Canada’s Fairfax Africa Investments to raise its 9.2 billion-rand ($700 million) takeover offer.

The all-share offer from AfriSam and Fairfax on Sept. 4 valued PPC shares at 5.75 rand but expectations of a higher bid, either from Fairfax or others such as Nigeria’s Dangote Cement, have kept the share price above that level.

Asked what would happen if Fairfax raised its offer in a questons-and-answers document posted on its website, it said “this may happen given the low offer price on the table.”

On Thursday Dangote Cement, which is controlled by Africa’s richest man Aliko Dangote, said it was interested in buying PPC, which is also the subject of a proposed merger with with local rival AfriSam.

If, however, none of the offers from the prospective bidders materialise and if the AfriSam merger doesn’t go ahead, PPC, which has operations in six countries, said it could continue as a standalone business.

“PPC is a solid business, a clear market leader with a useful footprint across Africa. Shareholders can be assured that PPC, as a standalone business, is also an attractive value proposition,” the firm said.

Shares in PPC were up 1.12 percent at 6.31 rand at 1422 GMT. ($1 = 13.1363 rand) (Reporting by Nqobile Dludla; editing by David Clarke, Greg Mahlich)

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