Dangote offers PPC cash, shares

Dangote Cement, the Nigerian company controlled by Africa’s richest person, has written to PPC, offering SA’s biggest cement maker cash and shares as part of a takeover deal.

Dangote Cement, the Nigerian company controlled by Africa’s richest person, has written to PPC, offering SA’s biggest cement maker cash and shares as part of a takeover deal that is fuelling a bidding war.

“We are waiting for them to get back to us, hopefully early next week,” Aliko Dangote said in an interview with Bloomberg TV in New York.

“They can be part and parcel of the Dangote Cement story, where we’re going to be in 18 African countries.”

The approach by Lagosbased Dangote follows a joint offer from Toronto-based Fairfax Financial Holdings and PPC’s domestic rival, AfriSam Group.

While PPC has said it would consider all bids, the Public Investment Corporation, its largest shareholder, supports a tie-up with AfriSam and Fairfax, people familiar with the matter said last week.

LafargeHolcim, the world’s biggest cement maker, is also monitoring PPC’s situation, the people said.

Two banks had agreed to support his offer, Dangote said, but did not identify the lenders.

“They’ll be able to fund us 100%. The market in SA needs consolidation,” he said.

“It’s the right thing for us to go in there and consolidate. The issue is that they are making a bit of a mistake.

“They are focusing on the highest bidder.

“They are focusing more on value rather than, ‘what does it have for us going forward?”’ Dangote said. / Bloomberg, with