Fairfax Financial Holdings makes bid for PPC stake on condition of AfriSam merger

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South Africa: Canada’s Fairfax Financial Holdings has made an offer of US$154m to buy a stake in PPC on condition that the cement producer agrees to a merger with AfriSam. Fairfax will also invest a further US$309m to pay off AfriSam debts to aid the deal, according to the Cape Times newspaper. The proposed merger ratio is based on 58% PPC and 42% AfriSam.

PPC said to its shareholders that it had received two other offers from trade buyers about a ‘pan-African combination’ with PPC. It added that although it had yet to ‘fully consider’ the Fairfax proposal, the offer was ‘fundamentally’ undervalued.

Last modified on 06 September 2017

URL: https://globalcement.com/news/item/6512-fairfax-financial-holdings-makes-bid-for-ppc-stake-on-condition-of-afrisam-merger

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