Cement group PPC gets LafargeHolcim approach for some African assets (updated)

Helios Fairfax Partners

27/10/2017 09:26

(Adds detail, gives background) 
    JOHANNESBURG, Oct 27 (Reuters) - South Africa's biggest 
cement producer PPC  PPCJ.J  said on Friday it had received an 
expression of interest from LafargeHolcim  LHN.S  which is 
planning a combination of some of its African assets. 
    PPC, which has operations in six countries in Africa, has 
previously received interest for its assets from other bidders 
looking to expand in the region.  
    PPC said LafargeHolcim was expected to submit a firm offer 
in November as it contemplates a deal which could include a 
partial cash offer and a special dividend to PPC shareholders. 
    PPC said it would provide further details of the proposed 
combination if there was a firm offer. 
    South African cement maker AfriSam has made three attempts 
to merge with PPC to create a pan-African cement group with 
assets across six countries.  urn:newsml:reuters.com:*:nL8N1LL2M7 urn:newsml:reuters.com:*:nL8N1LB2O8 AfriSam is 
backed by the African unit of Canada's Fairfax Africa Holdings 
 FAHu.TO .  urn:newsml:reuters.com:*:nL8N1LL2M7 urn:newsml:reuters.com:*:nL8N1LB2O8 
    The regional unit of Fairfax made a partial offer to buy PPC 
shares for 2 billion rand ($140 million) subject to PPC 
shareholders agreeing to a tie-up with its nearest unlisted 
rival AfriSam.  urn:newsml:reuters.com:*:nL8N1LL2KZ 
    PPC said the Fairfax partial offer would still proceed. 
    Dangote Cement  DANGCEM.LG  said last week it was still 
interested in acquiring PPC and would do a deal at the right 
price.  urn:newsml:reuters.com:*:nL8N1MU5SC 
    Dangote, which said in September it was interested in buying 
all of PPC's shares, later withdrew saying it did not want to 
get into a lengthy process with an uncertain 
outcome. urn:newsml:reuters.com:*:nL5N1LV2J2 
    PPC previously said if none of the offers from the 
prospective bidders materialised and if the AfriSam merger did 
not go ahead, it could continue as a standalone business. 
 urn:newsml:reuters.com:*:nL5N1LW3YA 
    "Regardless of the outcome of the concurrent processes now 
underway, we believe that PPC is a solid business in its own 
right," Chairman of PPC Peter Nelson said in a statement.   
    Shares in PPC rose more than 6 percent at the market open 
before paring gains to be 4.37 percent higher at 6.93 rand by 
0741 GMT.  
 
($1 = 14.3151 rand) 
 
 (Reporting by Tanisha Heiberg; editing by Jason Neely and Jane 
Merriman) 
 ((Tanisha.Heiberg@thomsonreuters.com; +27117753034; Reuters 
Messaging: tanisha.heiberg.thomsonreuters.com@reuters.net)) 
 
Keywords: PPC M&A/LAFARGEHOLCIM