PPC’s share price jumped 6.5% to R7.07 on Friday morning after Swiss building material group LafargeHolcim emerged as a rival bidder to Fairfax and AfriSam.
Both PPC and LafargeHolcim issued statements saying they were in talks regarding a "possible transaction in Africa".
"LafargeHolcim intends to submit a firm intention offer during the week commencing November 20, following the completion of a due diligence process," PPC said.
LafargeHolcim said it was in talks with PPC’s board "regarding a possible transaction in Africa. PPC is a leading regional cement manufacturer with a presence in southern and eastern Africa."
PPC’s share price rising to R7.07 puts it 23% above the R5.75 offer from Canadian fund manager Fairfax, which is dependent on PPC agreeing to merge with AfriSam.
PPC said its independent board would consider Fairfax’s and AfriSam’s offer concurrently with LafargeHolcim’s offer.
"PPC shareholders are advised that PPC has received a nonbinding expression of interest from LafargeHolcim, which contemplates a combination of certain African assets, a partial cash offer and a special dividend," PPC said on Friday.
On October 6, Nigerian cement maker Dangote announced it was dropping out of the bidding war for PPC.
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