French cement giant Lafarge Group has sold 58.61% of its stake in Ashaka Cement Plc to Lafarge Africa Plc in an off-the-market deal valued at N41 billion ($252 million).
Lafarge sold 1.3 billion ordinary shares of Ashaka Cement at N30.95 each. The sale follows the company’s decision to merge its Nigerian and South African assets into a single unit; Lafarge Africa Plc.
In creating Lafarge Africa, the group will sell the entirety of its 72.4% stake in South African unit while relinquishing control of equity stake in Ashaka Cement Plc, Atlas Cement Company Limited and United Cement Company of Nigeria Limited to Lafarge Wapco for $200 million and the 1.4 billion shares.
Lafarge owns 35%, 58.61% and 100% of United Cement, Ashaka Cement and Atlas Cement respectively.
The business consolidation, which will see the Nigerian unit of Lafarge retain its stock listing, is expected to make Lafarge Africa Plc the sixth highest capitalised company on the Nigerian Stock Exchange (NSE).
The Lafarge deal marks the third off-market trades done on the Nigerian Stock Exchange in the past week.
Read the full article here: http://www.ventures-africa.com/2014/09/lafarge-sells-ashakacem-stake-for-252m/