French cement giant, Lafarge Group has sold 58.61 percent of its stakes 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 its 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.
The consolidation will enable Lafarge expand its product offering, exploit with greater pace Africa’s growth opportunities and enhance value creation for its stakeholders. It will also give the cement maker an edge in the African cement market which is presently dominated by Dangote cement.
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In creating Lafarge Africa, the group will sell the entirety of its 72.4 percent 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 percent, 58.61 percent and 100 percent 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).
In July, Lafarge Nigeria informed the Nigerian bourse that it had changed its name to Lafarge Africa Plc after it securing shareholders’ approval that month.
The Lafarge deal marks the third off-market trades done on the Nigerian Stock Exchange in past one week.
Dangote Industries also sold shares valued at $300 million to Investment Corporation of Dubai while Qatar National Bank bought 1.8 billion ordinary shares from Ecobank Transnational Incorporated. (VENTURES AFRICA)
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