PIC increases shareholding in PPC

Cement producer PPC reported on Monday, 16 October, that the Public Investment Corporation (PIC) had increased its shareholding in the South African cement company, which is currently mulling bids from several parties that are vying for its shares.

AfriSam, supported by Canada's Fairfax Africa Investments, made an offer in September to buy R2bn of PPC ordinary shares at ZAR5.75 a share (US$0.43). The offer includes a ZAR4bn recapitalisation of AfriSam before any merger.

The PIC, which invests funds on behalf of state-owned entities, said it had increased its shareholding in the cement company to 21.22 per cent from 15 per cent.

PIC also owns 66 per cent of the unlisted AfriSam, which believes a merger would unlock value for shareholders of both companies.

At least two of PPC's larger shareholders have publicly disapproved of the of AfriSam Fairfax proposal, arguing that it undervalued PPC.