Regional cement maker Pretoria Portland Cement (PPC) today said it had received an offer from Nigeria’s Dangote Cement to acquire the company’s entire share capital.
PPC is already considering a bid by local rival AfriSam, which launched a new all-share merger proposal that values South Africa’s largest cement maker at about 9.2 billion rand ($700 million).
“PPC would like to confirm that it has received a non-binding communication of interest from Dangote Cement Plc with respect to the acquisition of the entire share capital of PPC,” the company said in a statement.
“The Independent Board of PPC is considering the Indicative Proposal and will make a further announcement in due course once it has concluded its consideration of the Indicative Proposal.”
Last week PPC said an offer from Canadian insurer Fairfax Financial Holdings to acquire a 22 percent stake in the cement maker at an offer price of R5.75 per share, undervalued the company.
PPC operates 11 cement factories in South Africa, Botswana, the Democratic Republic of Congo, Ethiopia, Rwanda and Zimbabwe.
Dangote Cement is part Nigerian tycoon, Aliko Dangote’s multinational industrial conglomerate.
PPC share traded 5.7 percent higher to R6.3 today.- The Source