PIC reportedly backs joint offer for PPC

PPC'S largest shareholder, Public Investment Corporation (PIC), is supporting a joint offer for South Africa's biggest cement-maker from domestic rival AfriSam Group and Canadian insurer Fairfax Financial Holdings, as the merger would create a national champion, according to people familiar with the matter, reported in the Cape Argus.

The enlarged cement producer will be able to benefit from significant cost savings as well as expand more effectively on the continent, according to the sources. However, the PPC will consider all offer equally in the best interest of the shareholders, a spokesperson said. PIC, AfriSam and Fairfax Financial Holdings did not offer any comment.

PIC has an 11 per cent stake in PPC as well as around 60 per cent in AfriSam.