PPC receives merger proposal from AfriSam

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Pretoria Portland Cement (PPC) has received a non-binding proposal from the AfriSam group that proposes a merger between it and AfriSam.

“The board is considering the indicative proposal and will make a further announcement in due course once it has concluded its consideration of the indicative proposal,” PPC said.

“The indicative proposal, if implemented, may have a material impact on the price of the company’s shares. Accordingly, shareholders are advised to exercise caution when dealing in securities of the company until such time a further announcement is made.”

(READ MORE: PPC to reconstitute board, shareholders meeting cancelled)

The company recently announced that it would be embarking on a process of reconstituting the board at its upcoming AGM in January 2015.

“Following discussions initiated by Bheki Sibiya with a number of shareholders, the board of directors of PPC has decided to embark on a process that is much more likely to achieve the best outcome for the company and all of its shareholders,” it said at the time.

According to [DATA PPC:PPC], the reconstituted board will consist of 12 non-executive directors and shall not include any current or former permanent executive directors of PPC.

“The re-constituted board of 12, comprising only of non-executive directors and the newly appointed CEO shall, as soon as reasonably possible following the AGM, appoint any other executive to the board in accordance with the JSE listings requirements,” it added.

“As it is deemed in the best interest of the company to select a new CEO at the earliest possible date, the current board will continue the selection process which could be completed prior to the AGM.”