Afrisam’s ‘third offer’ may cement PPC deal
Afrisam was preparing a bigger and better proposal to merge with its larger rival PPC, said people close to the process
When the shareholders of PPC, SA’s largest cement producer, meet on Monday, they will do so in a state of suspense, having to wait for a third attempt to combine their company with its smaller suitor Afrisam. This is after Friday’s cancellation of a second attempt to merge the country’s largest producers of the commodity. The first merger offer, also from Afrisam, came in December 2014, but was halted in 2015. Afrisam was preparing a bigger and better proposal to merge with its larger rival PPC, said people close to the process. The new proposal would include a strategic equity partner that would inject a large cash amount to recapitalise the combined entity, said people who cannot be named due to the sensitivity of the talks. "It became clear during the talks that it would not be enough for the combined entity to only lower the debt profile, but would need further gunpowder to compete more aggressively against larger producers on the continent," said one. Talks with the prospective...
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