By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE) -Lafarge Africa Plc, formerly, Lafarge Cement Wapco Nigeria Plc on Tuesday announced the completion of its $1.35 billion consolidation according to the is the 6th largest entity listed on the Nigerian Stock Exchange (NSE).
The deal saw Lafarge Africa acquiring Lafarge group’s shareholdings in Lafarge South Africa Holdings (Pty) Limited (LSAH), United Cement Company of Nigeria Limited (Unicem) through Egyptian Cement Holding BV, AshakaCem Plc (Ashaka) and Atlas Cement Company Limited (Atlas),
The cement maker in statement to the NSE confirmed that it had received all shareholder and regulatory approvals and met all the requirements to create the leading Sub Saharan Africa building materials company.
Lafarge Africa has a market capitalisation of ?521.9 billion listed on the Nigerian bourse with current cement capacity of 12 million metric tonnes per annum, ‘’the company is already on the path to further growth with an additional 5.5 million metric tonnes (2.5 million metric tonnes from Unicem’s on-going expansion project by second half of 2016 and 3 million metric tonnes in Ashakacem by mid-2017),’’ the company said.
Lafarger Africa as a consolidated entity has a strong balance sheet and cash flow generation potential, which positions it for future growth opportunities and increased product range and services to meet the growing building materials demand in Sub Saharan Africa.
As earlier reported, cement maker, Lafarge Wapco, prior to its name change to Lafarge Africa, had on June 2, 2014, announced its intention to consolidate all of Lafarge’s Nigerian operations and its South African assets in order to create a stronger platform for growth in Sub-Saharan Africa, with value creating opportunities.
Under the terms of the transaction, Lafarge group received 1,402,575,984 ordinary shares of Lafarge Africa and US$200 million in cash, for its 100 percent shareholding in LSAH, which owns 72.4 percent of the Lafarge group operating companies in South Africa, 35 percent equity stake in Unicem, a 58.61 percent controlling stake in Ashaka and 100 percent of Atlas.
The transaction was approved by shareholders at Lafarge Wapco’s Annual General Meeting (AGM), held in Lagos, on July 9, 2014.
