AfriSam submits new PPC proposal
The revised merger proposal includes a R4bn recapitalisation of AfriSam prior to any merger with PPC
Cement producer AfriSam has submitted a revised merger proposal to PPC as Canada’s Fairfax Africa Investments has undertaken to buy R2bn in ordinary shares in PPC at R5.75 a share. The conditional partial offer, confirmed by PPC in a stock-exchange announcement, affirms that AfriSam is the bidder in any merger. It now has the backing of the Toronto-listed African investment unit of Canadian insurance and investment management group Fairfax Financial Holdings. The proposed merger ratio is based on a share exchange of 58 PPC shares for 42 AfriSam shares. This valued PPC at a 62% premium based on pro forma earnings multiples applied to the two businesses, AfriSam said. The revised merger proposal includes a R4bn recapitalisation of AfriSam before any merger with PPC. It comes after the two companies said in late August that talks had been terminated despite AfriSam remaining "committed to a possible combination" of the two South African groups. "We are excited that Fairfax Africa sees ...
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