Tuesday, September 21, 2021

Dangote to take over South African Cement Company

Must read

Jaafar Jaafarhttps://dailynigerian.com/
Jaafar Jaafar is a graduate of Mass Communication from Bayero University, Kano. He was a reporter at Daily Trust, an assistant editor at Premium Times and now the editor-in-chief of Daily Nigerian.
- Advertisement -

Dangote Cement has approached South African cement producer, PPC, for takeover bid, but talks are at preliminary stages, Media reported on Thursday.

READ ALSO:   Dogara to CBN: Disclose accrued interest of Nigeria’s foreign reserves

PPC is already considering a bid by local rival, AfriSam, which launched a new all-share bid that values PPC at about 9.2 billion rand

Dangote Cement bid for PPC is a way to increase its visibility in the South Africa and surrounding SADC market.

PPC offers the prospect of a much larger business than DangCems current operation in South Africa through Sephaku Cement.

Annual Financial Statement for the full Year ended March 31, 2017 shows that Sephaku Cement had revenues of R2.28 billion (178 million dollars) in 2016 (see Fig 1).

READ ALSO:   Unilorin warns female students against walking in dark alleys

This compares to PPC which had revenues of R9.6 billion ($748 million) in 2016, about four times that of Sephaku.

Obviously, DangCem would love to own the bigger company and has signalled it would be open to a sale of all or part of its cement operations in Sephaku Cement to win regulatory approval for a takeover.

READ ALSO:   Despite exit from recession, Nigeria’s economy still vulnerable, minister says



- Advertisement -

More articles


Please enter your comment!
Please enter your name here
READ ALSO:   5 University of Maiduguri staff killed, 4 missing in Boko Haram’s deadly ambush

- Advertisement -

Latest article

- Advertisement -