AfriSam believes that its proposed merger with PPC Ltd will unlock significant value for stakeholders of both companies. “It is our belief that the offer tabled by Fairfax Africa and AfriSam’s merger proposal to PPC shareholders is reasonable and offers a meaningful premium” says Rob Wessels, acting CEO of AfriSam.
“The Merger is an ideal way to achieve consolidation for the two sets of shareholders and place the combined business in a strong position to compete with global and regional powerhouses on the continent” say Phuthuma Nhleko, Chairman of AfriSam. The Merger, like most if not all recent cement mergers globally, would give rise to substantial cost savings and other synergies. Additionally, in the South African context, the Merger would provide significant BEE credentials to the combined company while avoiding unnecessary dilution to the existing PPC shareholders.
PPC shareholders should be afforded the opportunity to assess the merits of the Offer and the Merger proposal based on appropriate and detailed disclosures in shareholder circulars and the views of the Independent Expert.