
By Alex C
Lafarge Group has announced its intention to transfer all of its shares in its businesses in Nigeria and South Africa into Lafarge Cement WAPCO Nigeria Plc. When finalized, Lafarge Cement WAPCO Nigeria Plc will be renamed Lafarge Africa Plc and will be strongly positioned to benefit from growth and development opportunities in Nigeria and Southern Africa.
Lafarge Africa, owned 73% by Lafarge Group, will remain listed on the Nigerian Stock Exchange. With combined businesses (Nigeria and South Africa) annual sales in 2013 totalling $1.25bilion, Lafarge Africa will be the 6th largest in Nigeria Stock Exchange (NSE) by market capitalization
The new entity will have nationwide coverage in both Nigeria and South Africa, with cement capacity of about 12 million tonnes, as well as operations in aggregates, ready-mix and fly ash. The combined businesses and expertise from Lafarge Group is expected to position Lafarge Africa to offer a full range of value added solutions to meet customers’ needs.
Commenting on the transaction, Chairman of Lafarge WAPCO, Chief Olusegun Osunkeye, OFR, OON said: “I am proud to be part of the creation of this leading African building materials platform. It will provide access to growth in two of the largest economies on the continent. It will mean that our shareholders are invested in a larger and more geographically diverse business; and it will contribute significantly to the economic growth of both our nations. “
Adding to this, Lafarge Group EVP Operations/Country CEO Nigeria, Guillaume Roux said: “Today’s announcement marks a key milestone. It adds momentum to our push for differentiation in order to deliver innovation that increases and improves our product portfolio. Our objective is to bring more housing and ever better solutions to contribute to building better cities that are more beautiful, more compact, more connected and more durable.”
Under the proposed terms, Lafarge Group will transfer its direct and indirect shareholdings in Lafarge South Africa Holdings (Pty) Limited (100.00% – representing 72.4% of underlying companies in South Africa), United Cement Company of Nigeria Limited (35.00%), Ashakacem Plc (58.61%) and Atlas Cement Company Limited (100.00%) to Lafarge WAPCO. The transaction will be concluded through a cash consideration of US$200m and the issuance of 1,402,575,984 Lafarge Africa shares to Lafarge Group.
The transaction is subject to Lafarge WAPCO shareholder approvals and obtaining required regulatory and other customary authorizations. The Group anticipates completion during H2 2014.
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