PPC Extends Battle for African Cement Maker by Ordering Review

JOHANNESBUG (Capital Markets in Africa) – PPC Limited hired Investec Plc to review an offer by Fairfax Financial Holdings Ltd. for South Africa’s biggest cement maker and said other interested bidders should be granted enough time to conduct full due diligence.

Investec has been appointed to consider the partial offer by Toronto-based Fairfax and the planned merger between PPC with local rival AfriSam Group Pty Ltd. that’s part of the proposal, Johannesburg-based PPC said in a statement Tuesday. The review is likely to take “some time,” the company said. Other bidders, including Nigerian competitor Dangote Cement Plc will be granted a “reasonable period” to decide whether to table firm offers.

The announcement extends indefinitely the protracted battle for PPC, which has been seeking partners to strengthen the balance sheet and support an expansion across Africa. Merger talks with AfriSam started in February, with Fairfax joining those negotiations last month. The Takeover Regulation Panel has granted Fairfax an extension until Nov. 22 to distribute its offer to shareholders, PPC said, allowing Investec more time to complete its report into the proposal.

PPC shares rose 0.5 percent to 6.35 rand as of 12:56 p.m. in Johannesburg, valuing the company at 10 billion rand ($732 million).

Dangote, controlled by Aliko Dangote, Africa’s richest person, has submitted an indicative proposal for PPC.

Source: Bloomberg Business News