Lafarge Africa to raise N131.65bn via rights issue

Lafarge Africa Plc has announced its plan to raise N131.65billion through a rights issue.

The cement producing firm, in a statement issued in Lagos, and signed by the Company’s Secretary and Legal Director, Edith Onwuchekwa noted that the Board of Directors decided on the terms on September 26, 2017, during a meeting held in respect of the rights issue.

Onwuchekwa stated that, “Following the resolution of the shareholders passed at the Annual General Meeting held on June 7, 2017, the Board of Directors have approved the terms of the Rights Issue.

Lafarge will raise N131.65bn by way of a rights issue at N42.50 per shares, by issuing 5 new shares for every 9 shares held by shareholder at the Qualification date which is yet to be announced.

Although Lafarge noted that the rights issue is presently undergoing regulatory approval process, the company said the price represents a c17.44% discount on Lafarge’s Africa’s traded closing price as at Friday September 22, 2017.