Home Business Lafarge Africa to Seek Shareholders’ Approval For N90bn Rights Issue

Lafarge Africa to Seek Shareholders’ Approval For N90bn Rights Issue

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Lafarge Africa Plc will be seeking shareholders’ approval to raise N90 billion through right issues and conversion of N100 billion by way of debt-to-equity. The company secretary, Mrs. Adewunmi Alode in a signed document posted on the Nigerian Stock Exchange (NSE) website, explained that the cement manufacturing company would hold an extra-ordinary general meeting by September to consider shareholders resolutions on six major issues.

Part of the resolutions includes “The Directors be and are hereby authorized to raise capital of N90 billion by way of a Rights Issue of ordinary shares to its shareholders and that the Rights Issue be executed at such price, time, for such period and on such other terms and conditions as the directors may deem fit.

“That subject to complying with applicable regulatory requirements, the Directors be and are authorized to apply any convertible loan, shareholder loan or any other loan facility due to any person, from the Company, as may be agreed by the person and the Company, towards payment for any shares or rights subscribed for in the Rights Issue.”

She stated that the shareholders of the company at the last Annual General Meeting duly authorized to raise additional capital of up to N100 billion by way of equity and/or debt (and subject to obtaining the approval of the relevant regulatory authorities) In addition, the shareholders are to approve the company’s related party transaction with LafargeHolcim (its parent company) through Caricement B.V.

However, a special resolutions that, “The Authorized Share Capital of the Company be and is hereby increased from N5,000,000,000 to N10,000,000,000 by the creation of 10,000,000,000 additional ordinary shares of 50 kobo each, ranking pari passu in all respects with the existing ordinary shares of the Company and that the new shares thus created be registered with the Securities & Exchange Commission and consequently that the Memorandum of Association of the Company be amended accordingly.”

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