In a statement issued yesterday, the leading cement firm in Nigeria however said contrary to reports that the process was ongoing, it was only still “at the preliminary stage”.
The all-share offer from AfriSam and Fairfax on September 4 valued PPC shares at R5.75, but expectations of a higher bid, either from Fairfax or others such as Nigeria’s Dangote Cement, have kept the share price above that level. LafargeHolcim, the world’s biggest cement maker, is also monitoring PPC’s situation, the people said.
In a statement signed by Dangote Cement’s company secretary, Mahmud Kazaure the company stated that the Aliko Dangote-led board of directors of Dangote Cement has communicated its interest to acquire the entire share capital of PPC to the board of directors of the South African firm.
PPC has a third offer from an unnamed bidder. AfriSam, which is majority owned by the Public Investment Corporation pension fund, first proposed a merger in 2014 when PPC’s share price had been under pressure.
“Dangote has the capacity to pull the deal off”, Pabina Yinkere, an analyst at Vetiva Capital Management, said by phone from Lagos.
Shares in Dangote rose 5 percent to 211.5 naira ($0.69) in Lagos after the takeover approach was announced. “It is a good strategy that would help Dangote consolidate leadership in the South African market”.
A takeover of PPC by Dangote would combine two of Africa’s largest cement makers with operations throughout the continent. “Shareholders can be assured that PPC, as a standalone business, is also an attractive value proposition”.