JSE-listed PPC’s share price rose nearly 5% early on Friday after it announced that it had received a credible expression of interest from LafargeHolcim to combine some of their African assets.
The proposal also included a partial cash offer to PPC and a special dividend to PPC shareholders.
PPC in September said it had, in addition to an offer from AfriSam and Fairfax Africa, received two indicative proposals from other industry players looking to achieve Pan-African combinations.
AfriSam in September proposed a revised merger proposal to PPC, which includes a proposal for a regional unit of Fairfax Africa Investments to buy R2-billion of PPC shares from shareholders.
Africa’s biggest cement producer Dangote Cement in September also said it was considering a merger with PPC, but it withdrew its offer to PPC on October 6.
LafargeHolcim will now undertake a due diligence process with a view to submit a firm offer to the PPC independent board in November.
“The independent board will evaluate every bona fide proposal with the potential to unlock value for shareholders.
“Regardless of the outcome of the concurrent processes now under way, we believe that PPC is a solid business, focused on delivering shareholder value by improving profitability, maximising our new investments and strategic options,” PPC chairperson Peter Nelson said in a statement.