JOHANNESBURG
- PPC shares plunged the most in more than two months after Dangote Cement
walked away from a potential takeover of South Africa’s largest cement maker, leaving
Canada’s Fairfax Financial Holdings Ltd. as the sole known bidder.
Dangote formally withdrew its interest on Thursday, PPC said in a statement.
The Lagos, Nigeria based company indicated last month it was interested in a combination
of two of Africa’s largest cement makers, but the approach never got beyond the
exploratory stage.
PPC shares
slumped as much as 12%, the most since July 24, before trading 5.7% lower at R6.08 as of 12:57 p.m. in Johannesburg.
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The
withdrawal of the Nigerian company, controlled by Africa’s richest person,
Aliko Dangote, is a blow for investors anticipating a bidding war that would
have bumped up PPC’s take- out price.
Toronto-based
Fairfax has tabled a partial offer for R2 billion ($146 million) of PPC
shares at R5.75 each on condition that the company merges with AfriSam
Group Pty Ltd., a local rival.
PPC Chairman Peter Nelson said Thursday that
more than 25% of shareholders opposed that proposal.