Lafarge Africa urges shareholders to key into ongoing Offer
Shareholders of Lafarge Africa Plc have been urged to demonstrate their commitment towards ensuring that the company is well positioned to achieve strategic growth objectives, by taking in full, their Rights, in the ongoing Rights Issue.
Such would ensure Investors in Lafarge Africa will continue to benefiting from sordid growth in company’s profitability and returns on investments year on year, as it enhances earning opportunities and dividend payment.
This was disclosed by GMD/CEO Lafarge Africa, Mr. Michel Puchercos, during the company’s presentation of ‘Facts Behind the Figures’ its ongoing rights offer, to dealing members of the Nigerian Stock Exchange, stockbrokers and other capital market stakeholders.
Lafarge Africa Plc is currently offering 3,097,653,023 ordinary shares of 50 kobo each at N42, 50 per share on the basis of 5 new ordinary shares for every 9 ordinary shares held as at 1st November, 2017. The Rights acceptance list opened on November 24th 2017 and is billed to close on 15 December, 2017.
Lead issuing house to the offer is Chapel Hill Denham while joint issuing house is Standard Chartered., while the rights are tradable on the floor of the Nigerian Stock Exchange between November 24th and 15th December.
Lafarge Africa’s CEO disclosed during the presentation that the net proceeds from the Rights offer would be applied to refinancing a portion of the company’s foreign currency denominated shareholder loans, by way of a debt to equity conversion, a portion will also be deployed to finance working capital requirement as well as used to expand operations.
He said, “by accepting your Rights, you will be making a strong statement regarding your commitment at ensuring that the company is well positioned to achieve its strategic growth objectives.”
The board of Directors, he said, “strongly recommends that shareholders take up their Rights in full” adding that the Rights circular contains an allotment letter on page 53 detailing full instructions for acceptance, payment and renunciation of your Rights.
Puchercos said that prospect of growth for the company in Nigeria remains very promising, as the company continue, to expand its operations across the country and work towards reducing its dollar denominated loans.
The projected growth, the company’s CEO said is hinged on boosting its customers reach, expanding volume, boosting operations and ensuring its traditional quality products across board.
“Power plant in Askaka, North East, which we have commenced building, will narrow cost of production significantly,”
In his address at the presentation, Nigerian Stock Exchange (NSE) Chief of Staff Mr. Bola Adeko, who represented the NSE CEO commended the company for using the platform to further educate shareholders on its ongoing Rights issue.
He also lauded the company for deploying the rights as a demonstrable effort to address foreign exchange denominated loan and clear focus at enhancing operational efficiency.
Describing Lafarge Africa as a committed player in the Nigerian cement industry and commitment to rewarding investors through return on profitability in the first half 2017, from a loss position in 2016 financial year.
Lafarge Africa, formerly Lafarge Cement Wapco Nigeria Plc primary business activity is the manufacturing and marketing of cement products and business solutions. Lafarge is one of market leaders in the Nigerian cement industry with core brand Elephant cement continuing to assert itself as superior product.
The company’s 2016 result showed that revenue declined by 18 per cent compared to 2015, largely driven by an overall decline in cement demand, linked to the economic recession in Nigeria. The performance was consistent across the board with Atlas, ready Mix, South West and Mfamosing operations dropped by 28 per cent, 24 per cent and 20 per cent, respectively . Ashaka operations almost identical to the previous year, declined by 11 per cent.
Stories by Bonny Amadi
