South Africa’s biggest cement maker PPC has received a merger proposal from unlisted rival Afrisam Group, the company said on Wednesday, a tie-up that would create a firm big enough to dominate the domestic building material market, Reuters reports.
PPC, whose stock has plunged in recent months due to acrimonious in-fighting between its board and former chief executive, said it was considering the proposal.
The company did not give anymore details on the value of the proposed merger.
Shares in PPC see-sawed after the announcement, rising as much as 6.46 percent. By 1201 GMT shares had pared gains to trade 4 percent higher at 25 rand.
Afrisam, majority-owned by state-owned pension fund Public Investment Corporation, is the country second-largest cement maker. (Reporting by Tiisetso Motsoeneng; Editing by Joe Brock)
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