South Africa's PPC sees higher offer from Fairfax (updated)

Helios Fairfax Partners

15/09/2017 15:23

(Adds quote, details) 
    JOHANNESBURG, Sept 15 (Reuters) - PPC  PPCJ.J , South 
Africa's biggest cement producer, said on Friday it expected 
Canada's Fairfax Africa Investments  FAHu.TO  to raise its 9.2 
billion-rand ($700 million) takeover offer. 
    The all-share offer from AfriSam and Fairfax  AFRSMV.UL  on 
Sept. 4 valued PPC shares at 5.75 rand but expectations of a 
higher bid, either from Fairfax or others such as Nigeria's 
Dangote Cement  DANGCEM.LG , have kept the share price above 
that level.  urn:newsml:reuters.com:*:nL8N1LM4LO  urn:newsml:reuters.com:*:nL5N1LV2J2 
    Asked what would happen if Fairfax raised its offer in a 
questons-and-answers document posted on its website, it said  
"this may happen given the low offer price on the table." 
    On Thursday Dangote Cement  DANGCEM.LG , which is controlled 
by Africa's richest man Aliko Dangote, said it was interested in 
buying PPC, which is also the subject of a proposed merger with 
with local rival AfriSam.  urn:newsml:reuters.com:*:nL5N1LV2J2  
    If, however, none of the offers from the prospective bidders 
materialise and if the AfriSam merger doesn't go ahead, PPC, 
which has operations in six countries, said it could continue as 
a standalone business.  
    "PPC is a solid business, a clear market leader with a 
useful footprint across Africa. Shareholders can be assured that 
PPC, as a standalone business, is also an attractive value 
proposition," the firm said.  
    Shares in PPC were up 1.12 percent at 6.31 rand at 1422 GMT. 
 ($1 = 13.1363 rand) 
 
 (Reporting by Nqobile Dludla; editing by David Clarke, Greg 
Mahlich) 
 ((nqobile.dludla@thomsonreuters.com; +27117753126; Reuters 
Messaging: nqobile.dludla.thomsonreuters.com@reuters.net)) 
 
Keywords: PPC M&A/AFRISAM FAIRFAX AFRICA