PPC surges on Dan­gote's takeover ap­proach

Swazi Observer - - BUSINESS -

LA­GOS - Dan­gote Ce­ment said it ap­proached PPC [JSE:PPC] about a takeover deal, sig­nalling the start of a pos­si­ble bid­ding war for South Africa’s big­gest ce­ment maker.

Dan­gote com­mu­ni­cated its in­ter­est to PPC’s board “with re­spect to the ac­qui­si­tion of the en­tire share cap­i­tal,” the Lagos­based com­pany said on Wed­nes­day in a state­ment to the Nige­rian Stock Ex­change. “This com­mu­ni­ca­tion is still at the pre­lim­i­nary stage.”

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

While PPC will con­sider all bids, the Pub­lic In­vest­ment Cor­po­ra­tion, its largest share­holder, sup­ports a tie up with AfriSam and Fair­fax, peo­ple fa­mil­iar with the mat­ter said this week.

“Dan­gote has the ca­pac­ity to pull the deal off,” Pabina Yinkere, an an­a­lyst at Ve­tiva Cap­i­tal Man­age­ment, said by phone from La­gos. “It is a very liq­uid com­pany with a very strong cash flow. It is a good strat­egy that would help Dan­gote con­sol­i­date lead­er­ship in the South African mar­ket.”

PPC shares surged 4.03 per cent to R6.20 by 13:23 on the JSE af­ter it reached an in­tra-day high of R6.40. The com­pany is val­ued at about R9.5bn. Dan­gote, listed in La­gos, has a mar­ket cap­i­tal­i­sa­tion of $9.9bn. FIN24

CA­PAC­ITY: Pres­i­dent of Dan­gote Group, Aliko Dan­gote.

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