Fresh merger talks to rescue fumbling PPC
AfriSam re-enters fray as boardroom battles over producer's poor performance intensify
Since the board's falling out over strategy with its former chief executive Ketso Gordhan about three years ago, the questions of how cement producer PPC is to forge a new path amid an onslaught of domestic competition, and how it is to manage a successful Africa expansion programme, have been foremost in investors' minds. Given the 70% plunge in its valuation over the past five years, it's a story that hasn't gained much traction. The past week's resignation of CEO Darryll Castle, just two and a half years into his role, has served to further muddy the waters for the company, founded in 1892 as the country's industrialisation ramped up. It's a tenure during which the ailing producer's shares slumped 74% to R4.45 on his final day at the helm. Over the same period, the JSE All Share rose close to 13%. The group's gross profit has remained stagnant over the past three years, while return on equity has been steadily decreasing, according to Bloomberg data. Despite its performance "inve...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.