Dangote confirms "preliminary talks" with PPC

Talks between Dangote Cement and PPC regarding the possible acquisition of PPC by Dangote are in a "preliminary stage", according to the Nigeria-based cement producer, confirming news reports earlier this week. If successful, Dangote Cement would extend its presence in South Africa. Currently the company owns a 64 per cent stake in Sephaku Cement.

"DCP (Dangote Cement Plc) hereby confirms that the board of directors of 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," Dangote said.

PPC said in a statement its independent board was considering the Dangote proposal, which is rivalled by AfriSam’s all-share proposal valuing PPC shares at ZAR5.75/share. However, the PPC board has already stated that AfriSam’s offer “fundamentally undervalues” the company.