Dangote writes Exchange, says planned takeover of S’Africa’s PPC still loading
In keeping with standard operations procedures, Dangote Cement Plc., has written authorities of the Nigerian Stock Exchange (NSE), saying acquisition discursion with PPC Limited of South Africa is in its preliminary stage.
The letter seen by Business Hilights, said in parts: “In light of the foregoing, the DCP hereby confirms that the board of directors of the DCP has merely communicated its interest to the board of directors of PPC with respect to the acquisition of the entire share capital of PPC. This communication is still at the preliminary stage”.
Leading cement investor and industrialist in Africa, Alhaji Aliko Dangote, had in the last couple of years, began inroad to cement investments outside Nigeria following the successful completion of backward integration in local cement production.
The feat was achieved under the last administration headed by Dr. Goodluck Jonathan.
Otherwise, today, Nigeria is no more importing cement but has even gone further exporting products to neighbouring countries including Togo, Benin Republic, Niger, Chad and as far as Ghana.
Some of other African countries where Dangote has established cement factories include Congo, Zambia and Senegal among others.
The latest inroad in being made in South Africa, but through acquisition of existing company in the business, PPC Limited.
Our correspondent gathered that Dangote’s interest heightened following the collapse of talk between the PPC Limited and some local firms earlier in the year.
Before Dangote’s interest to own the company surged, Titan Cement Co. SA of Greece was looking at the South African company, after Toronto-based Fairfax offered to buy two billion rand of PPC’s shares and support a merger with AfriSam earlier this week.
Analysts say Dangote Cement sees a bid for the Johannesburg-based company as a way to accelerate expansion outside its home market of Nigeria, 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 Limited and domestic rival, AfriSam Group Pty Limited, and present them to shareholders in early October, one of the people said.
Statistics from Johannesburg Exchange showed that PPC shares jumped by 2.9 per cent to 6.38 rand as of 3:30pm in Johannesburg on Friday, on track for the highest on a closing basis since April 25. That values the company at 10.2 billion rand ($792m).
Other tow mega cement conglomerate watching activities around PPC Limited include LafargeHolcim Limited, the world’s biggest cement maker based in Jona, Switzerland, and Germany’s HeidelbergCement AG.
