03 October 2017
Leading PPC shareholder warns against merger with AfriSam 03 October 2017
South Africa: Prudential Investment Managers, one of the main shareholders of PPC, says it opposes a proposed merger between the cement producer and AfriSam. It said that the deal undervalues the group, according to the Business Daily newspaper. It added that it expects PPC’s share price to double in the next three to four years as production capacity in sub-Saharan African comes on line. Prudential owns a 14% share in PPC. 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.
Industria Nacional del Cemento aims for 75% market share in 2018 03 October 2017
Paraguay: Jorge Mendez, the president of Industria Nacional del Cemento (INC), says that his company aims to reach a 75% market share by the end of 2018. Production and cement deliveries are expected to rise 77,500 bags/day by the end of 2017 from 55,000 bags/day and sales are forecast to rise by US$50m/yr. The state-owned cement producer plans to reach sales of 13.2 million bags in 2017.
Ambuja Cement wins Harima Peethasar limestone block after delay 03 October 2017
India: Ambuja Cement has won an auction for Nagaur's Harima Peethasar limestone block in Rajasthan following a procedural objection. JSW Group claimed that it was unable to place a counter bid in the online auction due to problems with the computer servers of Metals and Minerals Trading Corporation (MMTC), the state company running the sale, according to the DNA newspaper. After examination the claim was dismissed.
Rohri Cement plant deaths rise to seven 03 October 2017
Pakistan: The number of fatalities from an explosion at the Rohri Cement Plant in mid-September 2017 has risen to seven, following the death of journalist Lal Bux Kandhro. Four people died in the initial blast whilst defusing explosives, according to the Dawn newspaper. Seven other people were severely injured in the incident, of which three have subsequently died including Kandhro.
Saudi Arabia: The Saudi Industrial Exports Company (SIEC) has signed a memorandum of understanding with Al Jouf Cement Company to export its products internationally. The Saudi government lifted a ban on exporting cement in 2016.
US law firm examines proposed Ash Grove Cement sale to CRH 03 October 2017
US: WeissLaw is investigating the proposed sale of Ash Grove Cement to Ireland’s CRH on the grounds of whether the board acted to maximise shareholder value prior to the deal. Citing an article by financial markets research company Seeking Alpha the law firm says it is exploring whether rising demand for cement due to expected government infrastructure spending, the company’s high market share in certain regions and its recent growth in operating earnings were fully taken into account when valuing the company. CRH and Ash Grove Cement announced the US$3.5bn deal in late September 2017.