PPC bidding war in offing
● 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.