LAFARGE Africa Plc has disclosed plans to raise additional N140 billion from the capital market through a Rights Issue.
The company said in a notice to the Nigerian Stock Exchange, NSE, yesterday, that it will seek shareholders’ approval during the 58th AGM, scheduled for June 7, 2017, to go ahead with the capital raising exercise.
The Board of Lafarge is also expected to present shareholders with a merger scheme between United Cement Company Limited, UNICEM, Calabar, and Lafarge Africa for ratification.
“Combined with improved operating performance, the proposals will strengthen Lafarge Africa’s expansion in Nigeria. Unicem, a 100% owned subsidiary of the company, has foreign exchange loan of approximately USD600 million, which was incurred for the completion of line-1 (2.5 mmtpa) and the commissioning of line-2 (2.5 mmtpa).
The company in the statement said that under the Rights Issue, LafargeHolcim Group will take up its Rights and convert its portion of the loan to equity, adding that all the shareholders of the company would have the same proportionate Rights in line with their shareholding in the company.
Combining its operations in Nigeria-Ewekoro and Sagamu plants in Ogun State, Ashakacem in Gombe State, Mfamosing in Cross Rivers State, Atlas Cement in Rivers State and Ready-Mix Nigeria with its varied operations in South Africa, Lafarge Africa has a current installed cement capacity of 14.1 mmtpa.
