By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-Cement maker, Lafarge Africa Plc said on Wednesday it has received the approval of Nigeria’s Securities and Exchange Commission (SEC) to proceed with the acquisition of 41.39 percent shares of minority shareholders of Ashaka Cement plc through a Mandatory Tender Offer (MTO).
This development is coming on the heels of its completion of the block trade in respect of 58.61 percent shareholding in Ashaka Cement and thus seeking to acquire stakes held by minority shareholders of the company.
‘’This block trade has triggered an MTO, in accordance with Section 131 of the Investments & Securities Act (No 29 of 2007) and Rule 445 of the Securities & Exchange Commission’s Rules and Regulations, which requires that a Mandatory Tender Offer be made to all other shareholders of a public company by any party that acquires 30% or more of the shares in that company,’’ a notice from the company to the NSE said.
Lafarge Africa said it will announce the terms of the Tender Offer, within a week.
On July 9, 2014, the company secured the approval of shareholders to consolidate its cement operations in Nigeria with Lafarge SA, South African to emerge top cement manufactures not only in Nigeria, but in the West African sub-region.
At the close of business Wednesday on the Nigerian bourse, share price of Ashaka cement gained 25 kobo opening at N22.05 and closed N22.30.
