PCC and AfriSam in merger talks

PCC and AfriSam in merger talks
13 February 2017

PPC is in merger talks with its nearest competitor, AfriSam Group, seeking to overcome valuation disagreements that prevented the completion of previous tie-up efforts, according to Reuters.

AfriSam first proposed the merger in 2014, when infighting between the PPC board and its former CEO has put downward pressure on PPC’s share price.

However, shares in PPC have performed significantly better, increasing by a third this year to date. The cement producer is valued at about ZAR11bn (US$823m). The value  of the proposed merger remains undisclosed.

"The parties have independently concluded that current market circumstances warrant entering into formal discussions to consider the proposed merger," PPC said in a statement.

PPC’s growth in sales and revenues are slower than initially forecast, partly due to a slow roll-out of the government’s infrastructure investment package over the next three years. The company is currently investing in new plants in the Democratic Republic of Congo, Ethiopia, Rwanda, Zimbabwe to boost overseas sales.

Published under Cement News