Johannesburg. – PPC Ltd shareholder Foord Asset Management has increased its stake in the South African cement maker to achieve the 10 percent support required to request a meeting to elect a new board, according to a person familiar with the matter.
During the week ending October 17, Foord bought shares on the open market to boost its shareholding after an earlier request for a meeting was rejected, the person said yesterday, asking not to be identified as the matter is private. Cape Town-based Foord will ask for a special shareholders meeting for a second time this week. The money-manager has the support of Visio Capital Management, the person said.

PPC, South Africa’s biggest cement maker, is embroiled in a battle between the board and at least two shareholders over the resignation of chief executive Mr Ketso Gordhan last month. The board is dysfunctional, according to Foord, and is hampering the company’s expansion in Africa amid increasing competition in its domestic market.

“Should we receive a competent request for a meeting then we will follow due process,” PPC’s head of investor relations Azola Lowan said in an e-mailed response to questions yesterday. Carolyn Levin, a money manager and head of research at Foord, declined to comment.

Mr Gordhan resigned on September 22 after less than two years as CEO, citing differences of opinion with fellow directors over matters including his intention to fire an unidentified senior executive. He said on September 29 he would return to his post if he had the backing of shareholders.

The Public Investment Corp, PPC’s biggest investor with a 12 percent stake, said September 30 it was in “total support” of the board and the company’s strategy.

Foord shares Gordhan’s concerns that the board isn’t capable of carrying out the cement maker’s plans, the person said.
During the five days ending October 17, about 30,4 million shares were traded, or 3,7 times more than the previous week. More than a third of the total was traded on October 13, according to data compiled by Bloomberg. – Bloomberg.

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