A global manufacturer of cement, LafargeHolcim has increased its equity in the Nigerian subsidiary, Lafarge Africa Plc to 76.32 percent.
With its stake, LafargeHolcim now control the much-needed three-quarters percentage shareholdings necessary for major corporate changes in the Nigerian cement giant.
LafargeHolcim took advantage of the recent rights issue by Lafarge Africa, to increase its majority stake by 4.97 percentage points, from pre-rights issue position of 71.35 percent to 76.32 percent after the rights issue.
Chairman, Lafarge Africa Plc, Mr. Mobolaji Balogun, explainedthat the recapitalisation will help reduce the group’s exposure to adverse foreign currency translation losses as experienced in 2016, following a 40 percent depreciation of the naira against the dollar.
Balogun said that LafargeHolcim’s decision to convert existing loans to equity demonstrates the core investor’s continued belief in the Nigeria story, pointing out that the rights issue is the largest so far in the Nigerian capital market and the largest investment in a listed company by an investor.
Lafarge Africa had on November 24, 2017 launched an offer to raise N131.65 billion through a right issue of about 3.1 billion ordinary shares of 50 kobo each at N42.50 per share.
The new shares were pre-allotted to shareholders on the basis of five new ordinary shares for every nine ordinary shares held as at the close of business on November 1, 2017.Please subscribe to our newsletter