AfriSam in more negotiations for merger with larger rival PPC
AfriSam is speaking to an equity partner based in the Americas, but a hostile takeover isn’t off the cards yet
AfriSam is in negotiations with an equity partner to recapitalise the company and enable SA’s second-biggest cement maker to push through a merger with larger rival PPC, according to two people familiar with the matter. Closely held AfriSam has a letter of intent from an investment company based in the Americas that’s willing to put up new funding, said the people, who asked not to be named as the talks are private. The deal could be concluded within the next 12 weeks, they said. The people declined to name the potential investor as an agreement may not be reached. PPC shares rose 3.7% to R5.08 as of 10.21am in Johannesburg, paring the year’s losses to 8.1% and valuing the company at R8.1bn. The prospect of a partner with more financial strength could enable AfriSam to put forward a new merger proposal to PPC that would be more attractive to management and shareholders in the Johannesburg-based company. After the collapse of a second round of talks last week, PPC gave AfriSam until ...
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