Dangote Cement Approaches South Africa’s PPC About Takeover
Dangote Cement Plc has approached PPC Ltd. about a takeover deal, signaling the start of a possible bidding war for South Africa’s biggest cement maker after an earlier offer led by Canada’s Fairfax Financial Holdings Ltd.
PPC shares rose 2.4 percent to 6.10 rand as of 9:33 a.m. in Johannesburg, increasing gains in the past month to 62 percent and valuing the company at 9.7 billion rand ($738 million). Dangote, listed in Lagos, has a market capitalization of about $10 billion.
A takeover of PPC by Dangote would combine two of Africa’s largest cement makers with operations throughout the continent. It would also scupper the South African company’s plans to merge with AfriSam, a deal that the PIC wanted to get through to create a national champion. Africa’s biggest money manager owns about 11 percent of PPC, according to data compiled by Bloomberg. It’s also the biggest shareholder in AfriSam with about 60 percent.