By Modupe Gbadeyanka
By the time shareholders of Lafarge Africa meet on Wednesday, June 7, 2017, one of the tasks they would have to attend to is the proposal to incorporate United Cement Company of Nigeria Limited (Unicem) into their firm.
The Board of Directors of Lafarge Africa Plc stated that also during the meeting, it would have to get the approval of shareholders on plans to raise about N140 billion in Rights Issue.
In a notice to the Nigerian Stock Exchange (NSE) today, the company said during its scheduled 2017 AGM next month, it would seek to get the nods on these proposals it emphasised “will strengthen the balance sheet and capital structure of the company by reducing foreign currency exposure and optimizing the Lafarge Africa organization.”
The statement signed by Uzoma Uja, the Company Secretary explained further that, “Combined with improved [operating] performance, the proposals will strengthen Lafarge Africa’s expansion in Nigeria.”
It was stated that Unicem is a 100 percent owned subsidiary of Lafarge Africa Plc and has forex loan of approximately $600 million, which was incurred for the completion of line 1 (2,5mtpa) and the commissioning of line 2 (2,5mtpa).
“Between Q4 2016 and April 2017, 50 percent of the outstanding loan was hedged using the Non-Deliverable Futures window of the Central Bank of Nigeria (CBN).
“The Rights Issue will be proposed to shareholders at the AGM.
“Under the Rights Issue, LafargeHolcim Group will take up its Rights and convert its portion of the loan to equity. When the Rights Issue is opened, all shareholders will have the same proportionate Rights in line with their shareholding in the company,” the statement said.
Adedapo Adesanya