LAFARGE Group Consolidates

LAFARGE Group has consolidated its shares and businesses in Nigeria and South Africa into Lafarge Cement Wapco Nigeria Plc.

The group’s business consolidation is contained in a statement made available to the News Agency of Nigeria (NAN) in Lagos.

It also said the new company from the business consolidation would be named Lafarge Africa Plc.

The statement said that the company would be positioned to benefit from the economic growth and development opportunities in Nigeria and South Africa.

Lafarge Group Head, Corporate Affairs, Mr Ademola Ojowolo, said that Lafarge Africa owned 73 per cent by Lafarge Group, would remain listed on the Nigerian Stock Exchange.

It added that the new entity would have nationwide coverage in both Nigeria and South Africa, with a cement capacity of about 12 million tonnes, operating in aggregates, ready-mix and fly ash.

Commenting on the transaction, Chairman of Lafarge WAPCO, Chief Olusegun Osunkeye, said that he was proud to be part of the creation of this leading African building materials platform.

Osunkeye said that the exercise would 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,'' Osunkeye said.

Also speaking, Lafarge Group EVP Operations/Country CEO Nigeria, Guillaume Roux, described the consolidation as a key milestone that would create value for shareholders.

Roux said that the decision would enable the company to be more innovative, increase and improve its product portfolio.

He said that ``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.”

NAN reports that under the proposed terms, Lafarge Group would transfer its direct and indirect shareholdings in Lafarge South Africa Holdings (Pty) Ltd.

The transaction, according to the statement, will be concluded through a cash consideration of US$200m and the issuance of 1,402,575,984 Lafarge Africa shares to the Lafarge Group.

Also, it said that the transaction was subject to Lafarge WAPCO shareholders approval and other required regulatory authorities would be completed in the second half of 2014.

It said that Lafarge Africa would be the sixth largest on the NSE by market capitalisation