Photo: John Woodroof
JOHANNESBURG - The Independent board of listed cement and lime producer PPC has recommended that its shareholders turn down the partial offer by Fairfax Africa Investments, which was conditional on a merger between the company and rival cement producer AfriSam. 

This follows Fairfax indicating its firm intention in August to make a partial offer to acquire ordinary shares to the value of R2 billion in PPC at an offer price of R5.75 a share. 

The independent board was constituted to consider the terms and conditions and merits of the offer. It appointed Investec Bank as its independent expert to provide a fair and reasonable opinion on the partial offer. 

PPC’s independent board said yesterday that the process of considering the terms and conditions of the partial offer had decided not to recommend to shareholders that they accept it. 
It said Investec Bank was of the opinion that the partial offer, both in the context of the proposed merger and on a stand-alone basis, was not fair and reasonable. 

PPC said the independent board had advised Fairfax that it would not be recommending the partial offer. Shares in PPC rose 2.01percent yesterday on the JSE to close at R6.60.