Lafarge Africa owns 50 per cent stake in UNICEM

Lafarge Africa Plc has announced that in view of the company’s announcement in March 2015 that Nigerian Cement Holdings B.V. (NCH), a 50 per cent affiliate of Large Africa Plc, has completed the acquisition of the first 15 per cent tranche stake in UNICEM.

According to the company, the recent corporate action brings NCH’s stake in UNICEM to 85 per cent.

It noted that NCH has completed the acquisition of the second and final tranche of 15 per cent of equity interest of Flour Mills of Nigeria Cement Industries in UNICEM.

Accordingly, NCH now owns 100 per cent of UNICEM and consequently Lafarge Africa Plc now owns 50 per cent of the equity of UNICEM. The Company stated that UNICEM’s operational office is located in Calabar and its manufacturing plant in Mfamosing, Cross Rivers State.

It currently has a cement production capacity of 2.5Mtpa and is developing a second production line of 2.5Mtpa. The second production line is targeted to be commissioned in 2016 to bring UNICEM’s total production capacity to 5.0Mtpa.

Lafarge had on November 18, 2014 announced that the Nigerian Cement holding 50 per cent stake of Lafarge Africa Plc has entered into an agreement with FMN Cement Industries Limited, a wholly owned subsidiary of Flour Mills of Nigeria Plc to acquire its 30 per cent investment in UNICEM.

It noted that in pursuant to the agreement, the first tranche of 15 per cent will be acquired in 2015, while the second tranche of 15 per cent will be acquired on or before February 2016.

Lafarge Africa had also at the end of 2014 made an offer worth about $122 million to buy out minority shareholders in Ashaka Cement Plc.

The offer was part of procedures to consolidate its businesses following the $1.35 billion merger of Lafarge Africa’s Nigerian and South African businesses, which received approval from shareholders in July.

The company in a notice to Nigerian Stock Exchange said that as part of the merger deal it had acquired a stake in Ashaka Cement of more than 30 per cent, the trigger point for making a full takeover bid under Nigeria’s securities and takeover rules.

Under the terms of the offer, shareholders who accept it will receive 57 Lafarge Africa shares for every 202 held in Ashaka Cement and an additional cash payment of N2.00 per share. The offer will run from December 10, to January 16, 2015, the company said.

Lafarge Africa, one of the leading cement producers had secured the approval of Nigeria’s Securities and Exchange Commission (SEC) to proceed on a mandatory tender offer to acquire equity stakes held by minority shareholders in its majority-owned subsidiary, Ashaka Cement Plc.

This development came on the heels of its completion of the block trade in respect of 58.61 percent shareholding in Ashaka Cement and thus seeking to acquire stakes held by minority shareholders of the company.