Fairfax exits PPC partial acquisition bid

11th December 2017 By: Natasha Odendaal - Creamer Media Senior Deputy Editor

Fairfax Africa Investments has withdrawn its intention to acquire R2-billion worth of shares in cement producer PPC.

In an update to shareholders on Monday, JSE-listed PPC said it had received formal notification on Friday that Fairfax would no longer pursue the partial offer.

PPC had not considered the partial offer to be fair and reasonable and had publicly advised its shareholders not to accept the deal.

The partial offer was conditional on shareholder approval, which would have given effect to a merger between PPC and AfriSam Group.

Fairfax’s withdrawal followed closely on the heels of Ireland-headquartered CRH’s decision not to submit an updated expression of interest.

In November, CRH submitted a nonbinding expression of interest for an all-cash proposal to acquire a controlling stake in PPC, with the intention of submitting an updated bid after concluding a due diligence.

PPC continues to engage with LafargeHolcim; however, there is no guarantee the talks will result in a firm intention offer.