PPC uncertainty sinks shares
Merger talks with Afrisam aimed at creating a South African cement champion in question after the second high-profile board member leaves
Cement producer PPC’s share price slumped 13.7% to R4.22 on Monday following news that CEO Darryll Castle was resigning with immediate effect. Castle is the second high-profile board member to announce his departure from the group. Last week, nonexecutive director Tito Mboweni bailed out on the company, which is in the midst of discussions to merge with Afrisam. PPC said Castle would be available for six months to ensure a smooth handover. Johan Claassen, the MD of PPC’s South African cement business, will act as CEO while the board seeks a replacement. PPC would not comment on speculation that the two resignations are related to disagreements over merger talks with Afrisam aimed at creating a South African cement champion. Previous merger talks were abandoned in early 2015, but were resumed in February. In March Afrisam’s CEO of seven years, Stephan Olivier, announced his resignation. He was replaced on a short-term contract by Rob Wessels, a former chief investment officer at Afri...
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