Lafarge Africa Seeks Approval for Rights Issue

0
962

The Board of Directors of Lafarge Africa has submitted to the Nigerian Stock Exchange a Notice of its 58th Annual General Meeting (AGM) at which it will propose a Rights Issue for an amount up to N140 billion for approval by the shareholders of the Company.

Also on the AGM agenda is a proposal to shareholders to approve the merger of Unicem into Lafarge Africa. The AGM is scheduled to be held in Lagos on Wednesday, June 7th, 2017.

These proposals will strengthen the balance sheet and capital structure of the Company by reducing foreign currency exposure and optimizing the Lafarge Africa organization. Combined with improved [operating] performance, the proposals will strengthen Lafarge Africa’s expansion in Nigeria.

Unicem, a 100% owned subsidiary of the Company, has FX loan of approximately USD600m which was incurred for the completion of line 1 (2,5mtpa) and the commissioning of line 2 (2,5mtpa).

Between Q4 2016 and April 2017 50% of the outstanding loan was hedged using the Non Deliverable Futures window of the Central Bank of Nigeria.

The Rights Issue will be proposed to shareholders at the AGM. Under the Rights Issue, LafargeHolcim Group will take up its Rights and convert its portion of the loan to equity.

When the Rights Issue is opened, all shareholders will have the same proportionate Rights in line with their shareholding in the Company.

SHARE
Previous articleNSE Set to Host Inaugural Real Estate Investment Trust Conference
Next articleCBN to sell $100 mln at currency auction
Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.