PPC bid­ding war in off­ing

The Times (South Africa) - - Business -

● Dan­gote Ce­ment has ap­proached PPC about a takeover deal, sig­nalling the start of a pos­si­ble bid­ding war for South Africa’s big­gest ce­ment maker af­ter an ear­lier of­fer led by Canada’s Fair­fax.

Dan­gote has told PPC’s board that it is in­ter­ested in buy­ing “the en­tire share cap­i­tal”, the La­gos-based com­pany said in a state­ment to the Nige­rian Stock Ex­change.

The ap­proach by the com­pany owned by Aliko Dan­gote, Africa’s rich­est per­son, fol­lows a joint of­fer from Toronto-based Fair­fax and PPC’s do­mes­tic ri­val AfriSam.

While PPC would con­sider all bids, the Pub­lic In­vest­ment Cor­po­ra­tion, its largest share­holder, sup­ports a tie-up with AfriSam and Fair­fax.

PPC shares rose 2.4% to R6.10 on the JSE, in­creas­ing gains in the past month to 62% and valu­ing the com­pany at R9.7-bil­lion. Dan­gote, listed in La­gos, has a mar­ket cap­i­tal­i­sa­tion of about R132-bil­lion.

A takeover of PPC by Dan­gote would com­bine two of Africa’s largest ce­ment mak­ers with op­er­a­tions through­out the con­ti­nent. It would also scup­per the South African com­pany’s plans to merge with AfriSam, a deal that the PIC wanted to get through to cre­ate a na­tional cham­pion.

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