“PPC is pleased to advise that it has entered into an agreement to purchase a controlling equity stake in Safika Cement Holdings (Pty) Limited ("Safika") for the cash consideration of approximately R350 million,” the cement maker said in a statement on Wednesday
The target, Safika Cement Holdings, makes more than 20 million bags of cement a year in five factories.
Safika is a blended cement producer in South Africa; producing over 20 million bags per annum. The business 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.
"We are very excited to be able to add another complimentary business to PPC. This is an important step in our `Keeping the Home Fires Burning´ strategy,” Ketso Gordhan, CEO of PPC commented
The proposed transaction is subject to approval by the regulatory authorities as well as the conclusion of the due diligence process.