PIC bulks up interest in cement-maker PPC

News that Nigerian-based Dangote Cement had withdrawn its expression of interest in PPC has not damped speculative interest in the share.

On Monday, the Public Investment Corporation (PIC) announced it had increased its stake to 21.22%, from 15.17%.

The PIC also owns 66% of the unlisted AfriSam, which believes a merger will unlock value for shareholders of both companies

The PIC announcement followed last week’s notice by Prudential Investment Managers that it had built up a 15.18% stake in the cement producer.

A day earlier, Value Capital Partners said it had built up a 5.01% stake in PPC.

Value Capital and Prudential have said they are opposed to a proposed merger with AfriSam and claim PPC has more value as a stand-alone business. PIC, which is a major shareholder in AfriSam, has been backing a merger of SA’s largest cement groups for several years.