Displaying items by tag: Bid

South Africa: Dangote Cement is considering making a bid for PPC. The interest of the Nigerian company could start a bidding contest for the South African cement producer, according to sources quoted by the Cape Times newspaper. Canada’s Fairfax Financial Holdings with AfriSam made an offer for PPC in early September 2017. However, PPC said that the offer was ‘undervalued.’ It also reported to shareholders that it had received two other offers. It is expected to present any offers it has received to shareholders in early October 2017.

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.

India: Dalmia Bharat Cement has been selected as the preferred bidder for the Kesla II limestone block in Raipur District, Chhattisgarh. The block, with reserves of 215Mt, has an estimated value of US$1.6bn, according to the Hindu newspaper.

Brazil: Camargo Corrêa is conducting talks to sell its cement business InterCement for US$6.5bn. Two bids, including one by Mexico’s Cemex, have already been made according to the O Globo newspaper. The Brazilian conglomerate was reportedly selling a minority stake in InterCement in mid-2015 and in late-2015 its chief executive officer Vitor Hallack said it was prepared to sell its assets to cut its debts.

InterCement is the second largest cement producer in Brazil with a production capacity of 15Mt/yr and 12 integrated cement plants. The country as a whole saw its domestic sales of cement fell by 11.7% year-on-year to 57.2Mt in 2016 according to data from the Brazilian National Union of Cement Industry.

US: The US Customs and Border Protection plans to start awarding contracts by mid-April 2017 for a proposed border wall with Mexico. The agency says it will request bids on or around 6 March 2017 and that companies would have to submit ‘concept papers’ to design and build prototypes by 10 March 2017, according to the Associated Press. Finalists must then submit offers with their proposed costs by 24 March 2017. No details on where construction will start or how much it will be cost have been released.

Estimates for the cost of a 2000-mile border wall vary significantly. The Government Accountability Office estimates it would cost on average US$6.5m/mile for a pedestrian fence and US$1.8m/mile for vehicle barriers. However, an internal Homeland Security Department report prepared for department secretary John Kelly places the bill at about US$21m according to an anonymous source quoted by the Associated Press. It proposes that existing barriers built during the George W Bush administration be extended first in stages.

The cost of the wall will depend on the height, materials and other specifications of the project. Granite Construction, Vulcan Materials and Martin Marietta Materials are all likely to be potential bidders and Mexico’s Cemex is also likely to benefit from any increase in demand for construction materials in the region.

South Korea: Hanil Cement and LK Investment Partners have been chosen as the preferred bidders for the acquisition of Hyundai Cement. They won out against rival bidders as their offer was higher than expected at US$567m, according to the Maeil Business Newspaper. They were bidding to buy a 85% stake in Hyundai Cement. If the purchase completes then Hanil Cement could increase it market share to 30% from 20% at present.

South Korea: Six companies have made bids for Hyundai Cement. Ssangyong Cement Industrial, Halla Cement, IMM Private Equity, LK Investment Partners, Hyundai Sungwoo Holdings and PineStreet Group have submitted terms to acquire a 84.6% stake in Hyundai Cement, according to the Maeil Business Newspaper. Creditors and sales advisors of the cement producer intend to choose a preferred bidder before the end of February 2017. The sale is expected to raise up to US$525m.

Trinidad & Tobago: The directors of Trinidad Cement have once again advised shareholders to reject an offer by Cemex to buy the company. In a circular to shareholders the cement producer said that the amended offer made by Cemex in early January 2017 was still below the value its auditors had calculated. Cemex previously made an offer to Trinidad Cement in December 2016.

Pakistan: Bestway Cement says it is considering making a bid for Dewan Cement's north plant and related assets. It joins Lucky Cement, Fecto Cement, Kohat Cement and a Chinese company in expressing interest in Dewan Cement, according to the News International newspaper. Bestway added that the final outcome will depend on due diligence and the bidding process.

South Korea: Hyundai Sungwoo Holdings has reportedly made a bid for Hyundai Cement. It joins a shortlist of potential buyers including Ssangyong Cement Industrial, Halla Cement, United Asset Management Company (UAMCO) and IMM Private Equity, according to the Maeil Business Newspaper. Hyundai Sungwoo Holdings, a manufacturer of car parts, was previously part of the same group that also owned Hyundai Cement.