Cement maker PPC is hoping to have a new merger proposal from AfriSam by the beginning of September, with the latest termination of merger talks sending PPC’s share price down almost 7% on Friday. PPC said its smaller rival AfriSam had terminated its “heads of terms”‚ which were to precede a formal agreement, but may soon offer a new deal. PPC and AfriSam announced in February they had restarted talks to potentially merge their operations, nearly two years after previous talks were abandoned. Specific terms had been set for the proposed deal, including on empowerment levels, and debt ratios. PPC spokesperson Siobhan McCarthy said PPC had indicated to AfriSam it would prefer any new offer by September 1, after which it would lift its cautionary trading notice. PPC declined to comment on the reasons for the withdrawal by AfriSam, which confirmed the withdrawal, but also declined to elaborate. The pull back in PPC’s share price should be expected after a strong performance earlier in t...
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