The plan to create a leading Sub Saharan Africa building materials platform got a boost yesterday as shareholders of Lafarge Cement WAPCO Nigeria Plc (Lafarge WAPCO) overwhelmingly approved the creation of Lafarge Africa Plc.

The holding company to be listed on the Nigerian Stock Exchange (NSE) will consolidate all Lafarge’s Nigerian and South African assets. Directors of the Lafarge WAPCO has requested the shareholders of the company to approve the consolidation of the assets and creation of Lafarge Africa among other resolutions.

Voting at the 55th annual general meeting in Lagos yesterday, the shareholders passed all the resolutions relating to the transaction. With approval, Lafarge Group will transfer its shares in its businesses in Nigeria (AshakaCem, Unicem and Atlas) and South Africa to Lafarge WAPCO for a cash consideration of $200million and the issuance of 1.4billion Lafarge Africa shares to the Lafarge Group. The new company, Lafarge Africa will be listed on the NSE.

Speaking at AGM, the Chairman of Lafarge WAPCO, Chief Olusegun Osunkeye said: “I am extremely pleased with the outcome of today’s vote.

"The overwhelming majority of our minority shareholders were strongly supportive, which reflects that they see the strong value opportunity in the creation of Lafarge Africa.

"Lafarge Africa is not only a value enhancing transaction for shareholders but it will provide significant value to all stakeholders through the creation of a Nigerian listed Sub-Saharan Africa building materials giant that will be better able to support the development needs of our continent.”

Speaking in the same vein, Guillanume Roux, who will be the Managing Director/Chief Executive Officer of Lafarge Africa Plc said : The creation of Lafarge Africa allows the company to continue in its drive to be the best in the areas in which it operates.

"The broader geographic coverage means that Lafarge Africa will be better positioned to serve its customers more widely. It also places the company in a stronger position to be able to benefit from the economic growth and development opportunities available in both Nigeria and South Africa.”

The new company will be the 6th largest firm listed on the NSE in terms of market capitalisation put above $3 billion. Lafarge Africa will have a combined production capacity of around 12 million metric tonnes (MT) comprising Lafarge WAPCO (4.5 million MT), Lafarge South Africa Holdings (3.6 million MT), United Cement Company of Nigeria (2.5 million MT), Ashaka Cement ( one million MT) and Atlas Cement Company – an import operation with bagging capacity of 0.5 million MT.


Source: THISDAY
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