The Nigerian Stock Exchange (NSE) granted approval to Lafarge Africa to issue and list 413.18 million ordinary shares to acquire 50% in United Cement Company of Nigeria (Unicem), which were held by Egyptian Cement Holding (ECH) B.V.
Lafarge Africa recently launched a bid to acquire additional 50% equity stake in Unicem as the cement group seeks to wrap up its consolidation with full ownership of major cement-producing subsidiaries.
The Board of Directors of Lafarge Africa had approved the acquisition of the 50% equity stake in the Calabar, Cross River-based Unicem, to increase Lafarge Africa’s equity stake to 100%.
The equity stake was held by Egyptian Cement Holding (ECH) BV, an entity that is jointly owned by LafargeHolcim Group and Lafarge Africa. LafargeHolcim’s interest in ECH is held through Holcibel SA. Lafarge Africa will purchase the shares from Holcibel.
By the conclusion of the acquisition, Lafarge Africa will own an indirect 100% equity stake in Unicem, which makes the Calabar-based cement firm a wholly-owned subsidiary of Lafarge Africa.
Lafarge had on July 9, 2014 received shareholders’ approval to consolidate its cement businesses in Nigeria and combine these with South African operations to create a leading sub-Saharan building materials giant to be known as Lafarge Africa Plc.
Under the transaction, Lafarge Group transferred its direct and indirect shareholdings in Lafarge South Africa Holding Limited of 72.4% and its equity stakes in three other cement companies in Nigeria-United Cement Company of Nigeria Limited, 35%, Ashaka Cement Plc, 58.61% and Atlas Cement Company Limited, 100% to Lafarge Wapco for a cash consideration of $200 million and the issuance of some 1.4 billion Lafarge Africa shares to the Lafarge Group.
