Lafarge Africa Targets N140b from Capital Market

By Modupe Gbadeyanka

Lafarge Africa Plc has hinted that it will approach its shareholders in June to get their approval to raise about N140 billion from the capital market.

This move comes after the cement firm declared a full-year pre-tax loss of N22.82 billion in 2016 against N29.29 billion profit it made a year earlier.

However, in the first quarter of 2017, the company returned to profit, declared a pre-tax profit of N5.2 billion.

Lafarge Africa said it would raise the N140 billion in fresh equity and convert some loans into shares as part of a planned rights issue.

The money realised would then be used to boost the business.

Most businesses operating in Nigeria have struggled to survive due to the economic crisis in the country caused by drop in prices of crude oil in the global market as well as fall in the volume of oil produced by the country caused by militants in the oil-rich Niger Delta region.