By Dipo Olowookere
The board of Lafarge Africa Plc has approved the terms of its proposed rights issue of N89.21 billion, the company has disclosed.
The approval, according to a statement issued by the cement firm, was given on Monday during an emergency meeting of the board of directors in Lagos
Business Post recalls that on September 25, 2018, at an Extra-Ordinary General Meeting (EGM), shareholders of Lafarge Africa passed a resolution for the raising of the fresh capital.
Though the exercise is yet to have the full backing of the regulators, Lafarge Africa hopes to offer 6 new shares for every 7 shares held by shareholders for N12 per share at the qualification date to be announced soon.
The rights price represents about 10.45 percent discount on Lafarge Africa’s traded closing price as at Monday, December 3, 2018, N13.40k per share.
“Lafarge Africa Plc (Lafarge Africa) hereby notifies the Nigerian Stock Exchange (NSE) of the decision of the Board of Directors at the meeting held yesterday, December 3, 2018 in respect of the proposed Rights Issue.
“Following the resolution of our shareholders passed at the Extra-Ordinary General Meeting held on September 25, 2018, the Board of Directors have approved the terms of the Rights Issue.
“Lafarge Africa Plc will raise N89.21 billion by way of a Rights Issue at N12.00 per share, by issuing 6 new shares for every 7 shares held by shareholders at the Qualification Date, which will be announced.
“The Rights Price represents a c.10.45% discount on Lafarge Africa’s traded closing price as at Monday, 3rd December 2018.
“The regulatory approval process is ongoing,” the statement by the company said.
