Regional cement maker Pretoria Portland Cement (PPC) says it has received an offer from a global building materials and solutions company, LarfargeHolcim, challenging an earlier offer from Fairfax.
PPC, which operates 11 cement factories in South Africa, Botswana, the Democratic Republic of Congo, Ethiopia, Rwanda and Zimbabwe is subject of several takeover bids, including from Nigeria’s Dangote.
LafargeHolcim is a leading global building materials and solutions company which produces cement, aggregates and ready-mix concrete, with a footprint in 80 countries. Acquiring PPC will see the Swiss-based firm combining its African assets with South Africa’s largest cement maker.
Both Larfarge and PPC have operations in Zimbabwe.
“PPC shareholders are advised that PPC has received a non-binding expression of interest (“EOI”) from LafargeHolcim, which contemplates a combination of certain African assets, a partial cash offer and a special dividend,” PPC said in a statement on Friday.
PPC said LafargeHolcim intended to submit a firm offer next month after a due diligence process.
“LafargeHolcim intends to submit a Firm Intention Offer during the week commencing 20 November 2017, following the completion of a due diligence process,” PPC said.
PPC said the Fairfax Africa Investments Proprietary Limited (Fairfax) partial offer, which was announced early last month, was still proceeding in accordance with the independent board process. It has previously indicated that Fairfax’s R2 billion offer undervalues the company.
Dangote Cement made its pitch to acquire the company’s entire share capital, also last month. Last month PPC reported that volumes at its Zimbabwe operation rose 25 percent in the period between January to August on increased production at its new Harare mill.