09 October 2014
Steppe Cement reports third quarter 2014 improvements 09 October 2014
Kazakhstan: Steppe Cement Ltd has reported third quarter 2014 revenues of US$4.21m, higher than the US$39.8m it reported in the same period of 2013. Cement sales volumes of 582,429t were achieved during the third quarter 2014, up by 16% from the third quarter of 2013.
Gordhan attempts to be reinstated as CEO of PPC 09 October 2014
South Africa: Former PPC CEO Ketso Gordhan has met most of the major PPC shareholders in his battle to be reinstated to the top executive job, saying that he did not regret suddenly leaving the group. Gordhan shocked the market on 22 September 2014 when he resigned from PPC with immediate effect. He subsequently unsuccessfully petitioned the board to reinstate him, which spurred him on to lobbying shareholders directly to reappoint him.
"I have met with most shareholders and the issue is in their hands," said Gordhan. "Clearly, I would like to be back in my job — I would like to finish what I started." PPC said that he had 'regrettably resigned' over 'differences of opinion with the board, regarding board procedures for the approval of certain decisions.' Gordhan later said that he had lost confidence in the board for not dismissing an executive that he said was undermining company strategy. The company had only two executives, Gordhan and finance director Tryphosa Ramano.
Gordhan has canvassed the following shareholders: Public Investment Corporation (10.99%): State Street (10.86%): Lazard (6.88%): Foord (3.41%). Gordhan has not yet met PPC's black economic empowerment shareholders, including the PPC SBP Consortium Funding SPV, which holds 6.6%.
LafargeHolcim merger approved conditionally in South Africa 09 October 2014
South Africa: The Competition Commission (CC) has approved the merger of Holcim and Lafarge in South Africa. Although Lafarge has a significant presence in South Africa, Holcim's only interest is in a stake it holds in Afrisam.
"The commission found that Holcim's shareholding interest in Afrisam, a cement producer in South Africa, would present anti-competitive effects post-merger," said the CC. "This is due to the fact that the shareholding creates an undesirable structural link between Holcim and Afrisam in that it provides Holcim with access to Afrisam's commercially-sensitive information."
The commission found that the shareholding by Holcim in competitors would create a platform for collusion in the cement industry post-merger. The CC said that this was compounded by the history of collusion in the South African cement industry and the high concentration levels and barriers to entry in the cement industry.
"To address the competition concerns, the commission has approved the merger on the condition that Holcim divests of the shareholding in Afrisam within a period of three years after approval of the merger," said the CC.