Ashaka shareholders endorse share swap deal with Lafarge Africa

26 October 2017

At the instance of court-ordered meeting, shareholders of Ashaka cement that missed initial opportunity for Ashaka cement share swap with Lafarge Africa PLC shares have unanimously voted in favour of swap deal.

Ashaka cement shareholders voted in favour of the resolution authorising the exchange of total of 302,045,793 ordinary shares of 50 kobo each held by minority shareholders for shares in Lafarge Africa. With the resolution for share swap, each holder will receive 57 Lafarge Africa shares for every 202 Ashaka Cement shares as at delisting date at N2 per share.

Acting Chairman of Ashaka Cement PLC, Edith Onwuchekwa said “We were  actually talking about the share swap  after the delisting in July last year, for shareholders who don’t  have the opportunity to gain the liquidity of their investment.  With the share swap which was approved at this EGM, they have the opportunity to do that. Secondly, they can participate in  Lafarge Africa PLC which is a bigger company,” she said.

On how the cement firm was able to  maintain smooth operations amidst  insurgent crisis instigated by members of  Boko-Harram, she said government is giving the company full support and named Ashaka a critical national asset. “So with that, we have more confidence  and we are able to consider an expansion of Ashaka.” 

“We still have a prospect for Ashaka. Currently we are building a 16MW coal-fired power plant at Ashaka cement. Once that is done, it will help in electrification of plant and also contribute to maximization of energy cost,” she added.

On his part, Managing Director of cement firm, Rabiu Umar said all the stakeholders were carried along in share swap arrangement.

Umar added that the plan to increase the  plant capacity is still afoot. “The plan is still on ground. We have project whereby we are going to unlock capacity from an existing plant as step one. Then step two would be subject to market forces, looking at bigger plan is beneficial”, he said.

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