South Africa’s PPC Ltd has announced that it will not be moving ahead with the AfriSam merger proposal. PPC has released the following statement regarding the decision:
On 10 December 2014, it was announced by PPC that the company had received a conditional, non-binding merger proposal from AfriSam Group (Pty) Ltd (‘AfriSam’). Following receipt of the proposal, the Board of PPC immediately commenced with its consideration of the proposal to establish whether this might be in the best interests of the shareholders and other stakeholders of the company.
There has been extensive discussion between the two companies on the merger proposal. The parties have not been able to reach consensus on the terms of the merger and therefore have terminated their discussions. In lieu of confidentiality agreements between the two parties, the Company is unable to elaborate on the detailed reasons for this termination.
The Board remains committed to its strategy of enhancing the company’s position in Southern Africa and expanding its footprint into other African countries. Progress continues to be made on the implementation of the strategy and an update will be given at the time of the company’s interim results on 19 May 2015.
Darryll Castle, CEO of PPC, said: “Over the last few months, we applied our minds extensively to the proposed merger with AfriSam. Ultimately we decided not to proceed with the proposed deal.
“I have spent my first weeks as CEO of PPC acquainting myself fully with the company’s operations, meeting the people and reviewing its strategic direction and growth strategy. I have been most impressed with what I have found and am very excited about the company’s future. I have established a number of priorities for the company and am looking forward to discussing these in detail when we report our interim results on 19 May.”
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/africa-middle-east/27032015/ppc-afrisam-merger-will-not-proceed-599/