Dangote Makes Takeover Approach for South Africa’s PPC Valued at $700 million

Dangote Cement, owned by Africa’s richest man Aliko Dangote, has made a takeover approach for South African rival PPC, according to a statement by the COmpany Secretary Mahmud Kazaure.

Kazaure said despite claims in the media that Dangote Cement was already in negotiations with PPC, the company had “merely communicated its interest” to the board of PPC.

“DCP (Dangote Cement Plc) hereby confirms that the board of directors of DCP has merely communicated its interest to the board of directors of PPC with respect to the acquisition of the entire share capital of PPC,” Kazaure said.

He said the communications are only in preliminary stages and when there is more to communicate, the company will do so.

Reuters reports that “PPC is already considering a bid by local rival AfriSam, which launched a new all-share merger proposal that values South Africa’s largest cement maker at about 9.2 billion rand ($700 million).

Reuters also claims that PPC has a third offer from an unnamed bidder, and the board is considering it.

Shares in PPC were up 4.53 percent to 170.04 Naira, while shares in Dangote were up 2.39 percent.