The board of directors of Lafarge Africa has submitted to the Nigerian Stock Exchange a Notice of its 58th Annual General Meeting (AGM) at which it will propose a Rights Issue for up to N140 billion for approval by the shareholders of the company.
Also on the AGM agenda is a proposal to shareholders to approve the merger of Unicem into Lafarge Africa.
The company’s secretary, Uzoma Uja, said the proposals are expected to strengthen the balance sheet and capital structure of the company by reducing foreign currency exposure and optimizing the Lafarge Africa organization.
Combined with improved (operating) performance, the proposals will strengthen Lafarge Africa’s expansion in Nigeria.
Unicem, a 100% owned subsidiary of the company, has Forex loan of approximately USD600m which was incurred for the completion of line 1 (2,5mtpa) and the commissioning of line 2 (2,5mtpa).
Between Q4 2016 and April 2017, 50% of the outstanding loan was hedged using the Non-Deliverable Futures window of the Central Bank of Nigeria.
Under the rights issues, LafargeHolcim Group will take up its Rights and convert its portion of the loan to equity.
When the rights issue is opened, all shareholders will have the same proportionate rights in line with their shareholding in the company.
The rights issue will be proposed to shareholders at the AGM billed for Lagos on Wednesday, June 7th, 2017.
Source: Daily Trust