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Dangote Considers Bid For South African Cement Firm - Business - Nairaland

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Dangote Considers Bid For South African Cement Firm by BlueBrothers(m): 2:14pm On Sep 11
Dangote Cement Plc is among those considering counteroffers for PPC Group Ltd. that could signal a bidding contest for South Africa’s largest cement maker, according to people familiar with the matter.


Dangote Cement Plc sees a bid for the Johannesburg-based company as a way to accelerate expansion outside its home market of Nigeria, said the people, who asked not to be named as the matter is private. PPC will consider any rival offers to the joint approach by Canada’s Fairfax Financial Holdings Ltd. and domestic rival AfriSam Group Pty Ltd. and present them to shareholders in early October, one of the people said.

PPC shares jumped 2.3 percent to 6.34 rand as of 12:11 p.m. in Johannesburg, the highest level since May 2. That values the company at 10 billion rand ($780 million).

LafargeHolcim Ltd., the world’s biggest cement maker based in Jona, Switzerland, and Germany’s HeidelbergCement AG are also monitoring PPC’s situation, the people said. Titan Cement Co. SA of Greece is looking at the South African company, according to one of the people. The cement makers’ interest was sparked after Toronto-based Fairfax offered to buy 2 billion rand of PPC’s shares and support a merger with AfriSam earlier this week, the people said. The proposal “significantly undervalued” the business, PPC said at the time.

A spokesman for Dangote refused to comment. Same for spokespeople of LafargeHolcim, HeidelbergCement, Titan, Fairfax and PPC.

The future ownership of PPC is up for grabs after merger talks with AfriSam failed for a second time last month following two-and-a-half years of on-off negotiations. Both companies have been struggling with high debt levels, which Fairfax offered to resolve with its unexpected entrance to the saga this week. The Toronto-based company said it would recapitalize AfriSam, enabling it to settle outstanding loans, and buy 2 billion rands worth of PPC shares at 5.75 rand each.

PPC’s current share price of 6.34 rand suggests investors expect a higher offer to emerge. The Fairfax proposal would give the Canadian company a stake of more than 30 percent stake in the combined entity, said two of the people. The value of the bid would rise when savings generated by sharing PPC and AfriSam infrastructure are taken into account, they said.

The Public Investment Corp., the biggest shareholder in both PPC and AfriSam, would prefer a higher cash component of more than 6 rand a share, the people said, adding that Fairfax hasn’t ruled out increasing its offer.

Dangote has been expanding out of Nigeria, its biggest market, and has operations in 14 other African countries, according to its website. Aliko Dangote, who also has interests in sugar, flour and packaged food businesses, has a net worth of $11.4 billion, according to the Bloomberg Billionaires Index.

Dangote would be open to a sale of all or part of its cement operations in Pretoria-based Sephaku Holdings Ltd. unit to win regulatory approval for a takeover, two of the people said.

Separately, PPC said it had reduced capital expenditure targets for fiscal years 2018 and 2019. The company sees spending of as much as 900 million rand in year through March 2018, rising to as much as 1 billion rand the following year, PPC said in a presentation to investors on Friday. The cement maker also said debt would probably fall in the current year.

SOURCE: https://brandspurng.com/dangote-considers-bid-for-south-african-cement-firm/

Re: Dangote Considers Bid For South African Cement Firm by eezeribe(m): 2:16pm On Sep 11
Just the way Dufil Prima (Makers of indomie Noodles) took over his Dangote Noodles....
Sometimes we win...
Sometimes we lose...
But try to win more often than you lose... That's the rule of the game.

5 Likes

Re: Dangote Considers Bid For South African Cement Firm by froz(m): 8:02am On Sep 12
ok na
Re: Dangote Considers Bid For South African Cement Firm by rodeo0070(m): 8:37am On Sep 12
Come and buy PHCN O!

6 Likes

Re: Dangote Considers Bid For South African Cement Firm by tripleY(m): 8:18am On Sep 13
OK
Re: Dangote Considers Bid For South African Cement Firm by veekid(m): 8:26am On Sep 13
Rich getting richer

3 Likes

Re: Dangote Considers Bid For South African Cement Firm by modelmike7(m): 8:26am On Sep 13
If it is Good for you, carry on sir

2 Likes

Re: Dangote Considers Bid For South African Cement Firm by registration(m): 8:27am On Sep 13
Another one...
Re: Dangote Considers Bid For South African Cement Firm by dakeskese(m): 8:27am On Sep 13
...
This man is NEVER afraid to take giant steps...
Lord, as we all go about the hustling and hardwork, I pray for open doors for all Nairalanders...

42 Likes 5 Shares

Re: Dangote Considers Bid For South African Cement Firm by john4reala(m): 8:28am On Sep 13
wow
Re: Dangote Considers Bid For South African Cement Firm by Toladipupo995: 8:28am On Sep 13
OK ... Noted.
Re: Dangote Considers Bid For South African Cement Firm by tobtap: 8:29am On Sep 13
good cool
Re: Dangote Considers Bid For South African Cement Firm by obo389(m): 8:29am On Sep 13
What do wrong with them MODs today? Double topic on FP?
Please do the needful...
Cc: lalasticlala
Re: Dangote Considers Bid For South African Cement Firm by Yomzzyblog: 8:30am On Sep 13
Good
Re: Dangote Considers Bid For South African Cement Firm by Tpave(m): 8:30am On Sep 13
Mods, this topic is posted twice on frontpage
Re: Dangote Considers Bid For South African Cement Firm by SLIDEwaxie(m): 8:31am On Sep 13
Wetin I wan say?

1 Like

Re: Dangote Considers Bid For South African Cement Firm by Antoeni(m): 8:31am On Sep 13
See people wey see road
Re: Dangote Considers Bid For South African Cement Firm by limanmohammed6: 8:31am On Sep 13
Carry on bros
Re: Dangote Considers Bid For South African Cement Firm by Bolustical: 8:31am On Sep 13
Yes
Re: Dangote Considers Bid For South African Cement Firm by Bolustical: 8:32am On Sep 13
Ok
Re: Dangote Considers Bid For South African Cement Firm by taheer88(m): 8:33am On Sep 13
hm
Re: Dangote Considers Bid For South African Cement Firm by correctguy101(m): 8:34am On Sep 13
All the spokes persons refused to divulge anything and una still carry the matter for head?

Jesus!!! Una dey try abeg

Re: Dangote Considers Bid For South African Cement Firm by SamzackD(m): 8:34am On Sep 13
Monopoly master





Is this where to do this, why can't you be civilised for once and do the right things at the right time
deepwater:
Yeah another one

The sun is rising at umuahia now


https://www.youtube.com/watch?v=Poo3wguy87c
Re: Dangote Considers Bid For South African Cement Firm by centoke30(m): 8:36am On Sep 13
Money is meant to be spent on assets. I hope he buys it
Re: Dangote Considers Bid For South African Cement Firm by centoke30(m): 8:36am On Sep 13
Money is meant to be spent on assets. I hope he buys it grin
Re: Dangote Considers Bid For South African Cement Firm by opalu: 8:37am On Sep 13
Wow
Re: Dangote Considers Bid For South African Cement Firm by Pavore9: 8:38am On Sep 13
Good move.
Re: Dangote Considers Bid For South African Cement Firm by holluwai(m): 8:39am On Sep 13
Money
Re: Dangote Considers Bid For South African Cement Firm by Dottore: 8:39am On Sep 13
Na wao
Re: Dangote Considers Bid For South African Cement Firm by twentyk(m): 8:39am On Sep 13
make dis man remain small investment for boys na.....just buying everything,colonising everything...

(0) (1) (Reply)

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