Shareholders of Ashaka Cement Plc have approved the complete acquisition of the company by Lafarge Africa, in a deal with a cash consideration of N604.092m (US$16.8m) and total value of N5.97bn.
The shareholders of Ashaka Cement agreed to allow Lafarge increase its stake in the company from 86.51% to 99.99%. However, the deal is subject to approval by the regulatory authorities, said Ashaka Cement.
Meanwhile, Ashaka Cement Plc’s energy strategy has helped it grow its earnings by 30%, in spite of environment and operational challenges. Edith Onwuchekwa, company chairman, stated that in addition to its turnaround plans, the company had utilised 82% of coal over the period.
She said that, despite lower cement demand and gas shortages, the company’s turnaround plan and energy strategy delivered EBITDA margins of 30%.
She added, “The erection of a 16MW coal-fired captive power plant at Ashaka is nearing completion and will significantly ensure the stability of electric power to the plant and the optimidation of our energy costs at the plant.”