By Modupe Gbadeyanka
The N140 billion rights issue proposed by the board of Lafarge Africa Plc has been approved by shareholders of the cement company.
The rights issue was approved by the shareholders at the Annual General Meeting (AGM) of the firm held on Wednesday in Lagos.
The rights issue process is expected to be launched after the approval of the transaction, the company disclosed yesterday.
Lafarge Africa’s largest shareholder, LafargeHolcim, is expected subscribe to its rights by converting the existing debt into equity.
Chairman of the board, Mr Mobolaji Balogun, speaking at the AGM on Wednesday, explained that subscription to the rights issue would likely take place in September 2017 and expected to be finalised by October 2017.
He said the decision of LafargeHolcim to convert existing loans into equity demonstrated Lafarge Africa’s belief in Nigeria.
