Canada’s Fairfax Africa Investments will not proceed with a plan to buy 23 percent of cement producer PPC for 2 billion rand (US$146.34 million), the South African company said on Monday.
Last month PPC’s board said it had advised Fairfax that it would not be recommending the Canadian firm’s partial offer to shareholders.
“On 8 December 2017, the Independent Board received Fairfax’s formal notification that it will not proceed with the partial offer and that, accordingly, the Fairfax partial offer circular will not be posted to PPC shareholders,” PPC said in a statement.
The Takeover Regulation Panel had granted Fairfax an extension to post its partial offer circular until December 12.
Fairfax offered to buy 23 percent of PPC in September for 5.75 rand per share, or 2 billion rand, on condition that it was approved by shareholders in order to allow a merger with South African rival cement maker AfriSam.
Update: Fairfax Africa, an affiliate of Fairfax Financial Holdings Ltd, earlier this year raised US$500 million to invest public equity, private equity and debt in African businesses.
(Reporting by Nqobile Dludla; editing by Jason Neely)
(This story has been edited by Kirk Falconer, editor of PE Hub Canada)
Photo courtesy of Reuters/Siphiwe Sibeko