Photo by: Bloomberg
Shares in cement producer PPC rose nearly 4% on Wednesday afternoon after the JSE-listed group received a conditional, nonbinding proposal from construction materials group AfriSam to merge the two entities.
The cement maker, which had been hit by instability after the exit of its CEO Ketso Gordhan led to in-fighting at the company, issued a cautionary as it considered the offer.
“The board is considering the indicative proposal and will make a further announcement in due course once it has concluded its consideration,” PPC said in a statement on Wednesday.
In September, Gordhan resigned from PPC on the back of the board's refusal to back his decision to fire a senior executive – a decision he later rescinded. However, the board declined to reinstate him, which had led to the months-long public row between PPC and the former CEO.
PPC, which believed Gordhan had undermined investor confidence in the company, had embarked on a process to reconstitute its board.
The board would comprise 12 nonexecutive directors and would not include any current or former permanent executive directors of PPC who had served within the ten-year period immediately preceding the date of the annual general meeting scheduled for January 26.