PPC results could fuel more acquisition interest

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South Africa: PPC has seen its net profit rise significantly in the six months to September 2017. It nearly tripled its profit year-on-year to US$21.1m from US$7.3m.

The company benefited particularly from a strong performance from its assets outside of South Africa. Its earnings before interest, tax, depreciation and amortisation (EBITDA) from its non-domestic assets rose by 25%, while group EBITDA grew by 4% to US$86m. The results bode well for a potential bidding war that now favours PPC shareholders.

Earlier in the week, PPC effectively rejected a conditional partial offer from AfriSam and Canada’s Fairfax Group for the company, stating that it undervalued the company. This latest set of results brings this assessment into sharper focus and may give cause for CRH and LafargeHolcim to think again about the values of their own non-binding offers, should PPC also be of the view that these also undervalue the company.

Last modified on 29 November 2017

URL: https://globalcement.com/news/item/6802-ppc-results-could-fuel-more-acquisition-interest

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