PPC SHARES DIVE AS NIGERIA’S DANGOTE CEMENT WALKS AWAY

PPC SHARES DIVE AS NIGERIA’S DANGOTE CEMENT WALKS AWAY

JOHANNESBURG – PPC shares plunged the most in more than two months after Dangote Cement walked away from a potential takeover of South Africa’s largest cement maker, leaving Canada’s Fairfax Financial Holdings Ltd. as the sole known bidder.

Dangote formally withdrew its interest on Thursday, PPC said in a statement. The Lagos, Nigeria based company indicated last month it was interested in a combination of two of Africa’s largest cement makers, but the approach never got beyond the exploratory stage.

PPC shares slumped as much as 12%, the most since July 24, before trading 5.7% lower at R6.08 as of 12:57 p.m. in Johannesburg.

The withdrawal of the Nigerian company, controlled by Africa’s richest person, Aliko Dangote, is a blow for investors anticipating a bidding war that would have bumped up PPC’s take- out price.

Toronto-based Fairfax has tabled a partial offer for R2 billion ($146 million) of PPC shares at R5.75 each on condition that the company merges with AfriSam Group Pty Ltd., a local rival.

PPC Chairman Peter Nelson said Thursday that more than 25% of shareholders opposed that proposal.

-BLOOMBERG

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Nigerians in South Africa
Nigerians in South Africa 2007 posts

We are about democracy, human rights, public opinion, political behavior, civil rights and policy aimed at improving the human condition, with a focus on African countries.

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