CRH throws hat in the ring in courting PPC
PPC says it has received notification from CRH that it is considering submitting an all-cash proposal to buy a controlling stake
PPC has announced that it has a third suitor — Dublin-based CRH — competing against LafargeHolcim and Fairfax.
PPC said on Monday it received a nonbinding expression of interest from CRH, "indicating that it was considering submitting an all-cash proposal to acquire a controlling stake".
This offers PPC shareholders an alternative to the nonbinding expression of interest received from Swiss buildings materials group LafargeHolcim on October 27, which "contemplates a combination of certain African
assets, a partial cash offer and a special dividend".
CRH and LafargeHolcim have both undertaken to provide a per share value for their offers during the week starting November 20. PPC is scheduled to release its interim results on November 23. It said in a trading statement last Tuesday that its headline earnings per share (HEPS) would improve by up to 40%.
Canadian financier Fairfax will have to raise the R5.75 per share offer it made on September 9, considering that PPC’s share price is now trading at about R6.50. The conditions Fairfax has set in its offer include PPC’s agreeing to merge with AfriSam.
"Headquartered in Dublin, CRH is a diversified international building materials company listed on the London, Dublin and New York stock exchanges and has a market capitalisation of €27bn," PPC said in Monday’s statement.