AFRISAM MEDIA RELEASE 20 SEPTEMBER 2017
"AfriSam and PPC have a proud collective business history of more than 200 years and have survived and thrived through many tough times in the past. The consolidation that has occurred in the global cement market, for example Holcim-Lafarge and Heidelberg-ItalCementi, has dramatically changed the landscape and operating environment on our continent over the last decade or so. Both PPC and AfriSam will continue to be negatively affected by the strength of global and regional powerhouses in Africa that has arisen through this consolidation. This is why we believe that a merged South African national champion, with strong empowerment credentials from AfriSam and PPC’s existing black shareholders, will not only be competitive in this changing market but will be able to pursue empowerment and social agendas that are critical to its success" says Phuthuma Nhleko, AfriSam’s Chairman.
Both companies have recently commenced new businesses or commissioned new capacity in the rest of Africa. This provides significant growth opportunities and market diversity but does present start-up risks and liquidity challenges.
“We believe that the combined entity, with a significant equity commitment of R6 billion from Fairfax, can build an even better future for its shareholders, its great African staff and the communities and countries that it would serve. We believe that PPC has experienced and talented staff and management who will work well with our skilled team to drive a merged entity to unlock significant value for all stakeholders" added Rob Wessels, AfriSam’s Acting CEO.
"We also share PPC's sentiment that it is best for shareholders to have an opportunity to assess the merits of the Merger and Partial Offer based on all relevant information, and that all parties follow the regulations that pertain to Offers that trigger regulatory procedures. AfriSam has also released its own important financial information which was not historically in the public domain as AfriSam is not listed."