PPC board rejects Fairfax offer

The board of PPC has advised its shareholders not to accept the offer of Fairfax Africa Investment Pty Ltd to buy a stake in the South African cement producer. The company will continue talks with LafargeHolcim and CRH on the sale.

The Takeover Regulation Panel has extended the deadline for the Fairfax offer to 12 December 2017, according to the cement producer’s board. Fairfax has signalled its intention to make an offer to acquire ordinary shares representing ZAR2bn (US$144.1m) of PPC’s capital at a price of ZAR5.75/share.

While PPC will continue negotiations with LafargeHolcim and CRH, the board explained that these will not necessarily result in the submission of firm letters of intent. LafargeHolcim is considering a possible merger of African assets while CRH is looking at buying a controlling stake.