PPC buys controlling stake in Safika Cement
Wednesday, 07 Aug 2013
PPC, South Africa’s largest cement maker, has entered an agreement to purchase a controlling stake in Safika Cement Holdings for about R350m in cash.
Safika, also a South African company, is a blended cement producer that produces more than 20-million bags a year.
It owns five blending facilities and one milling operation, and produces blended 32.5N cement under three brands -- IDM Best Build, Castle and the Spar Build-It house brand.
PPC CEO Ketso Gordhan said on Wednesday: "We are very excited to be able to add another complementary business to PPC. This is an important step in our ‘keeping the home fires burning’ strategy."
That strategy was adopted by former CEO Paul Stuiver, as part of a two-pronged approach involving entrenching the company’s dominance in Southern Africa and expanding in the rest of Africa.
The proposed Safika transaction is subject to approval by the regulatory authorities as well as the conclusion of the due diligence process.