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The Wonderful World of Cement
#16
A seven-notch downgrade is quite extreme and can conceivably come as a shock to both the issuer and investors. Therefore, this situation begs the question: what went wrong? It seems that in 2015, PPC became aware that it would need more capital in the future, and even considered a capital raise in September.

As part of its planning process, the company mandated the commercial (that is, non-rating) unit of S&P to come up with a dummy rating in order for PPC to determine the potential value of any capital- raising initiative. Unfortunately for PPC, the information gathered as part of this exercise was subsequently used by the S&P ratings arm to trigger an “event-driven review”, which then resulted in the company’s downgrade to junk status. What makes it worse, is that PPC was unaware of the acceleration clause in its DMTN programme.
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#17
Anyone else still riding this out?

Haven't really been monitoring the share itself, but doesn't seem like it's going anywhere fast.

#18
PPC, Do you guys think it is worth climbing in?

What is the latest news on them that affects their share price?
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#19
Growth in botswana and rowanda, zim plant up and running. Its make or break for ppc

#20
(02-06-2017, 11:31 AM)rayyaanS Wrote: Growth in botswana and rowanda, zim plant up and running. Its make or break for ppc

Stop! You are making me want to buy more PPC Tongue

If it touches 600 cents I will climb in.
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#21
See PPC share performance in graph attached.

They are not growing in South Africa and struggle to grow revenue elsewhere in Africa.

Unless they can find growth the share will just drag along and remain cheap due to EPS depression.

Not for me, next.


Albert

Image(s)
JSE Finance Forum Attachment - Filename: ppc cement share history.PNG   

#22
I'm just hoping for a quick 20% and somehow they feel like they might be able to do that. Won't buy them as a long term hold though as they'll probably go bust in the next couple of years.
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#23
I'm feeling a bit more optimistic as I think their non SA branches has far more room for growth as those countries still have around 4 - 8 percent GDP growth, plus most of them have only recently come online, with some near to completion.

Their revenue can only increase from here since they spent a ton of money developing and deploying these new revenue streams.

#24
Detailed Cautionary Announcement in Relation to the Proposed Merger of PPC and AfriSam Group Proprietary Limited

PPC Ltd
(Incorporated in the Republic of South Africa)
(Company registration number: 1892/000667/06)
JSE Code: PPC
ISIN: ZAE000170049
("PPC" or the "Company")

DETAILED CAUTIONARY ANNOUNCEMENT IN RELATION TO THE PROPOSED MERGER
OF PPC AND AFRISAM GROUP PROPRIETARY LIMITED

INTRODUCTION
Shareholders of PPC are hereby advised that the Board of Directors
of PPC and the Board of Directors of AfriSam Group Proprietary
Limited (“AfriSam”) (collectively the “Parties”) have entered into a
Heads of Terms to assess the merits of a potential merger between
the two groups (“Proposed Merger”) and to enter into formal
discussions in this regard.

The Parties have independently concluded that current market
circumstances, warrant entering into formal discussions to consider
the Proposed Merger.

As part of such discussions, the Parties will jointly assess the
value that they believe can be realised for the shareholders of PPC
and AfriSam if the Proposed Merger is implemented, which the
respective Boards of Directors believe may arise from the following:
i) The creation of a South African-owned cement producer that
is financially stronger, operationally more efficient and
has deeper technical capability;
ii) The merged entity being able, by virtue of such enhanced
capabilities, to invest in future growth opportunities;
iii) The merged entity being significantly empowered, given that
Phembani Group Proprietary Limited (a major shareholder in
AfriSam) and other empowered investors (including PPC’s
existing broad-based black economic empowerment (“B-BBEE”)
shareholders) will own a significant share of the merged
entity. This will be in addition to PPC’s announced
intention to implement a further B-BBEE ownership
transaction (“PPC’s Proposed B-BBEE Transaction”);
iv) Globally the cement market is dominated by multinational and
regional players. The merged entity will be well placed and
have the balance sheet capabilities to develop as a major
African cement producer, given its complementary production
assets in six African countries outside of South Africa;
v) Synergies which might arise from a combination of the
parties’ operations.

As part of the assessment of the Proposed Merger, and as a condition
to agreeing to pursue the Proposed Merger, the following will be
required:
i) The Parties being satisfied that, after closing of the
Proposed Merger, the merged entity will have similar levels
of gearing to PPC with sufficient financial liquidity;
ii) Agreement by the Parties on the merger ratio;
iii) The Parties confirming their preliminary view described
above that the merged entity will be significantly
empowered, including being satisfied with the potential
impact of the Proposed Merger on PPC’s Proposed B-BBEE
Transaction;
iv) Agreement between the Parties in respect of any potential
competition law considerations associated with the Proposed
Merger; and
v) Each Party separately conducting, and being satisfied with
the results of, a due diligence concerning the business,
assets and liabilities of the other; and
vi) Ultimately, agreement that the Proposed Merger is likely to
deliver compelling benefits for all stakeholders.

The Parties will communicate the outcome of the assessment of the
above considerations.

CAUTIONARY
The discussions between PPC and AfriSam regarding the Proposed
Merger, 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.

A live investor and analyst conference call will be held at 08:30
(SAST) this morning. PPC CEO Darryll Castle will briefly address
investors and analysts and then open the floor to questions.

Live dial-in details:
South Africa: 011 535 3600 or 010 201 6800
International: +27 11 535 3600 or +27 10 201 6800
Ask to be joined to the PPC investor and analyst conference call.

Up until three days after the conference call, a recording will be
available to investors and analysts that are unable to participate
on the live conference call.

#25
PPC: R7.00 remains a crucial level.

JSE Finance Forum Attachment - Filename: C4e1ZvwWMAAFfnW.jpg   

The above was taken from twitter
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#26
I see ‏@SimonPB (Simon Brown) tweeted "PPC and AfriSam trying for a merger again .. Probably a good idea"

Edit: Here is the sens - http://66.8.16.130/SENS_20170213_S381352.pdf
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#27
I read a few articles this weekend with various predictions, most of them pointing towards growth, everyone aiming for R8.50 after which the next target of R15 can be obtained.

This merger sounds like it could be very beneficial for shareholders, would be interesting to see how this affects the share price today.

I'm remaining positive

#28
(02-13-2017, 08:26 AM)Purply Wrote: I read a few articles this weekend with various predictions, most of them pointing towards growth, everyone aiming for R8.50 after which the next target of R15 can be obtained.

This merger sounds like it could be very beneficial for shareholders, would be interesting to see how this affects the share price today.

I'm remaining positive

Now if TAS would just do something today so I call sell some and jump on PPC. Smile
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#29
If this merger takes place then it means the government will own a cement monopoly correct? Thanks to PIC.

#30
(02-13-2017, 08:33 AM)Noobly Wrote: If this merger takes place then it means the government will own a cement monopoly correct? Thanks to PIC.

AFAIK PIC owns around 67% of Afrisam, not sure if they have anything in PPC though?






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