Sunrisepebble:
The Chinese company could very easily give a lower % premium to Minority shareholders.
Not Investment advice: Me personally, if the stock hits 75 I will gradually start exiting my position and leave about 20% holdings to see what the MTO is

Walahi I am not selling mine. I will see the end of the MTO.I am presently waiting for my dividend

If you like talk down on ellahlakes from now till for ever, we no care, just bring the offer on and let us cherry pick, I love cherry picking dogoyaro in street voice .

In another news, wapco will be delisted, my 100% game is here. I staked more than our game money here, but game is game in mega's voice.

designking:
This report is very misleading. Was it Nigeria economy that made Holcim sell off their stakes in Larfage in other Africa countries?

This is one major problem with journalism in Nigeria. They are more interested in sensational news instead of the facts

This is one reason why after news hit the stands about the government or some other entities, the next day we begin to hear the news being debunked. Then we call the entity a liar even when they did not initiate the story.

crownprince2017:
If you like talk down on ellahlakes from now till for ever, we no care, just bring the offer on and let us cherry pick, I love cherry picking dogoyaro in street voice .

In another news, wapco will be delisted, my 100% game is here. I staked more than our game money here, but game is game in mega's voice.

It is good decision. I will wait to buy in 5yrs time even if it is at #50 when I begin see the red oil and revenue. I am buying presco @430 presently. It does not mean I am late to the party
I will not buy now to complete the jijo cycle for some people who claim long time when inside them they don't even intend to stay one yr.i refuse to be thr mugu.If they plan long time investing. They won't feel so bitter each time the stock is talked about in manner they feel could push the price south If na long time truely dey thr mind,lol.They have become long time investor because jijo has gone wrong.

It's not misleading. Let's not wax political. The truth is, for long-term strategic foreign investors, the currency crises that Nigeria (and other African countries) experienced has been a serious punch in the gut.

Think about it: Only in 2021, not too long ago for a strategic investor with a multi-year investment horizon, if Holcim repatriated N1 billion naira in dividends from their stake in WAPCO, that would've been worth about $2.5 million. Today, those same dividends are worth only $600k -- a stunning 76% collapse!

For new entrants picking up the pieces, though, it's a Godsend.

designking:
This report is very misleading. Was it Nigeria economy that made Holcim sell off their stakes in Larfage in other Africa countries?

Implications of Holcim’s $1 Billion Sale of Lafarge Africa to Huaxin Cement

In an industry-shaping move, Swiss building materials giant Holcim AG has agreed to sell its 83.8% majority stake in Lafarge Africa Plc to Huaxin Cement Company Limited, a leading Chinese cement manufacturer, for a deal valued at $1 billion. This transaction, slated to close in 2025, brings with it profound implications for the Nigerian Stock market, Lafarge’s shareholders, and the broader African cement industry.

The sale of Lafarge Africa’s Nigerian unit represents a pivotal moment in the company’s history and in the regional cement market. Holcim’s decision to divest comes as part of a broader strategic realignment, with the company seeking to focus on higher-growth markets and divest non-core assets. Huaxin Cement’s acquisition of Lafarge Africa aligns with China’s growing presence in Africa’s infrastructure sector and marks a consolidation of Chinese influence in key industries across the continent.

For Lafarge Africa, this move have mixed consequences. On the one hand, the sale brings immediate financial benefits, with the deal valued at $1 billion for the entire entity, including its assets and liabilities. However, on the other hand, this set the stage for a strategic shift that will eventually lead to Lafarge Africa’s delisting from the Nigerian Exchange (NGX). The deal is contingent on regulatory approval, and Huaxin Cement intends to launch a mandatory takeover offer, potentially pushing for a privatisation of Lafarge Africa. For shareholders, this signals a possible exit opportunity, but the long-term value of the exit will depend on Huaxin’s post-acquisition strategies.

Lafarge Africa’s stock price has already seen volatility dive before the announcement, with the company’s shares falling by 1.69% on Friday, November 28, 2024. The price drop to N58.00 per share, down from N59.00, reflects investor uncertainty in the wake of the announcement. While the broader implications of the deal remain to be seen, it is likely that market sentiment will remain cautious in the short term. Whlie shareholders will be weighing the likelihood of a full delisting and what that means for their holdings.

A key consideration for investors is the potential for Huaxin to make good on its offer to take Lafarge Africa private. Should this occur, shareholders will be faced with the decision of whether to sell their shares or hold out for a better offer. The stock price fluctuations leading up to the close of the transaction could potentially create opportunities for savvy investors to capitalise on volatility.

Additionally, the Nigerian market has historically been sensitive to foreign acquisitions, particularly in strategic sectors like cement, which plays a critical role in the country’s infrastructure development. Huaxin Cement’s acquisition of Lafarge Africa brings with it new opportunities and risks. The deal may usher in new investments and initiatives aimed at expanding Lafarge Africa’s production capacity and market share in the region. Conversely, the transition of ownership may cause temporary disruptions, affecting market confidence and stock performance.

Broader Implications for the Cement Industry in Nigeria and Africa

The deal between Holcim and Huaxin Cement has significant implications not only for Lafarge Africa’s shareholders but also for the entire African cement sector. Nigeria, as one of Africa’s largest economies and the continent’s most populous nation, has long been a battleground for global cement giants, including Lafarge, Dangote Cement, and BUA Cement. Holcim’s exit signals the shifting dynamics of the market, with Huaxin Cement positioning itself as a formidable player in the region.

This move comes at a time when Africa’s infrastructure needs are rapidly expanding, driven by growing populations and urbanisation. The acquisition of Lafarge Africa will likely give Huaxin Cement greater access to a market with strong demand for cement and construction materials. However, the move also underscores the increasing competition between Chinese and African companies, as well as the growing influence of Chinese enterprises in African economies.

On the regulatory front, the sale raises questions about the future structure of Lafarge Africa and its role in the Nigerian market. While the company will remain listed on the NGX post-transaction, the potential for a mandatory takeover offer will lead to a shift in governance and operational focus. If the delisting occurs, it could set a precedent for other foreign-owned companies in the region to consider similar moves, which have wider implications for stock market liquidity and foreign investment flows into Nigeria.

Recommendations for Investors

As the deal progresses, investors in Lafarge Africa will need to adopt a cautious yet strategic approach. In the short term, market reactions may be volatile, particularly as regulatory approvals and takeover processes unfold. The decline in Lafarge Africa’s stock price, as evidenced by the 1.69% drop, suggests that investors are pricing in uncertainties around the deal and its impact on the company’s future.

In conclusion, while the $1 billion deal between Holcim AG and Huaxin Cement has created a buzz in the Nigerian stock market, it also signals potential shifts in ownership dynamics, market confidence, and the broader competitive landscape in Africa’s cement sector. The deal presents both opportunities and risks, and investors must stay informed and agile to navigate the evolving situation effectively.

HesInMe:
It's not misleading. Let's not wax political. The truth is, for long-term strategic foreign investors, the currency crises that Nigeria (and other African countries) experienced has been a serious punch in the gut.

Think about it: Only in 2021, not too long ago for a strategic investor with a multi-year investment horizon, if Holcim repatriated N1 billion naira in dividends from their stake in WAPCO, that would've been worth about $2.5 million. Today, those same dividends are worth only $600k -- a stunning 76% collapse!

For new entrants picking up the pieces, though, it's a Godsend.

JAGABANomics is happening to some companies but WAPCO shouldn't just leave now

designking:
This report is very misleading. Was it Nigeria economy that made Holcim sell off their stakes in Larfage in other Africa countries?

Thank you for pointing that out. That is how they report and push their biases on innocent and undiscerning readers, very negative people everywhere. They will report Lafarge leaving but will be silent about the chinese company coming in. As far as NG is concerned, there is really no loss of value.

Multinational Corporations are extremely large and reshuffles their portfolio from time to time just as mutual funds rebalance their funds by selling shares of a company to buy more of another. Everything is just a line in their reports and it is very easy for them to do.

No loss of value? That must be a very expensive joke. Did you skip the Econ 101 class on the impacts of currency devaluation?

ghm:

Thank you for pointing that out. That is how they report and push their biases on innocent and undiscerning readers, very negative people everywhere. They will report Lafarge leaving but will be silent about the chinese company coming in. As far as NG is concerned, there is really no loss of value.

Multinational Corporations are extremely large and reshuffles their portfolio from time to time just as mutual funds rebalance their funds by selling shares of a company to buy more of another. Everything is just a line in their reports and it is very easy for them to do.

bovali:


Also, they do not plan to delist after acquisition

They definitely plan to delist, refer to the communication shared earlier where a mandatory takeover was hinted.

I think Oando may see further downside pressure...

BullBearMkt:
OANDO ACCUMULATION PHASE ONGOING...
A lot of buying-selling transactions going-on between 57 - 64 creating price range. Will there be imbalance in buying pressure soon? Or will it be selling pressure imbalance?

PLAN YOUR TRADES AND TRADE YOUR PLANS

PuristForest:
I think Oando may see further downside pressure...

Not possible before the AGM this December.... Oando wan share goodies to all his shareholders.

HesInMe:
No loss of value? That must be a very expensive joke. Did you skip the Econ 101 class on the impacts of currency devaluation?

Where on earth did you see currency devaluation in the line of this discussion? We are discussing transfer of ownership of WAPCO (from Lafarge a foreign company to another foreign Chinese company, both in USD terms). The effect of devaluation is neutral on this transaction, except where there is no other foreign company picking the divested shares up. We should resist overthinking on simple matters please.

And why do you think the current owner is selling?

They've been in this game since at least 2001, built a new cement plant with new tech, developed supply chains -- all in the hope of tapping this large and growing consumer market, the Giant of Africa. Why up and leave all of a sudden, as have manufacturers of other consumer goods, like Nestle and Guinness?

ghm:


Where on earth did you see currency devaluation in the line of this discussion? We are discussing transfer of ownership of WAPCO (from Lafarge a foreign company to another foreign Chinese company, both in USD terms). The effect of devaluation is neutral on this transaction, except where there is no other foreign company picking the divested shares up. We should resist overthinking on simple matters please.

ghm:

Thank you for pointing that out. That is how they report and push their biases on innocent and undiscerning readers, very negative people everywhere. They will report Lafarge leaving but will be silent about the chinese company coming in. As far as NG is concerned, there is really no loss of value.

Multinational Corporations are extremely large and reshuffles their portfolio from time to time just as mutual funds rebalance their funds by selling shares of a company to buy more of another. Everything is just a line in their reports and it is very easy for them to do.

Truth be told, Tinubu has truly destroyed and messed up Nigeria's economy.

PuristForest:
https://ewnation.com/oando-prices-under-pressure-amidst-easing-rally/

The pressure go shake this market e bi like na so the main bull go start because Oando na market shaker

On this delisting issues...

The NGX should help us look into these delisting issues critically and with compassion for Nigerian minority shareholders in those companies.

How can these companies be operating or trading in Nigeria and not be willing to share little of the profits/losses made by them?

When these delisted minority shareholders are part of the Nigerians who buy and pay for their products.

IT'S NOW TIME FOR NGX TO HELP APPEAL TO THESE COMPANIES

PH Refinery: Low-Key Operation Begins, Marketers Oppose ₦‎1,030/litre

https://punchng.com/PH-refinery-Low-key-operation-begins-marketers-oppose-N1

megawealth01:
PH Refinery: Low-Key Operation Begins, Marketers Oppose ₦‎1,030/litre

https://punchng.com/PH-refinery-Low-key-operation-begins-marketers-oppose-N1

Whose report do we believe now?

vacanci:


Is there a possibility that the new owners could flood the market with high offers to crash the price only to prevent a MTO at a higher price than expected or to manipulate the exit price?

From the Investment and Security Act 2007(ISA) by SEC.

seems there has been recent updates to some sections, dunno if these particular sections are affected.
Section 142, 143 & 144.

Below image is section 144(e)

My Interpretation: If they either intend to keep buying minority on the floor after declaring MTO, they have to disclose it officially to Shareholders or in the bid contract document as stated by this SEC rule book whichever the case.
It can't be a hidden agenda.
(I may be wrong)

HesInMe:
And why do you think the current owner is selling?

They've been in this game since at least 2001, built a new cement plant with new tech, developed supply chains -- all in the hope of tapping this large and growing consumer market, the Giant of Africa. Why up and leave all of a sudden, as have manufacturers of other consumer goods, like Nestle and Guinness?

Read about it more here, it is not every time we should live in self pity for our country.

https://www.nairaland.com/8282715/holcim-sell-lafarge-africa-stake

The deal aligns with Holcim's strategy to streamline its portfolio and focus on high-growth regions, including the coming spin-off of its North American business, which remains on track for a U.S. listing in the first half of 2025.


"They sold in Tanzania and Uganda. The Chinese Company bought all these stakes and acquired Cement company in South Africa.
Nothing new, it's about revaluating your portfolio for optimality."

... besides, major western companies have pledged to reduce their stakes in high carbon products like ours, though I am not sure, may be a condition for successful US listing.

RE: Wapco, same source that gave initial gist. Says he has a document that shows the Chinese company want 100% and they will pay the same price per share. He doesn’t think it’ll go above that


Wow- 98 million bids
NFA/ DYOR

ghm:


Read about it more here, it is not every time we should live in self pity for our country.

https://www.nairaland.com/8282715/holcim-sell-lafarge-africa-stake

The deal aligns with Holcim's strategy to streamline its portfolio and focus on high-growth regions, including the coming spin-off of its North American business, which remains on track for a U.S. listing in the first half of 2025.


"They sold in Tanzania and Uganda. The Chinese Company bought all these stakes and acquired Cement company in South Africa.
Nothing new, it's about revaluating your portfolio for optimality"

Although not stated. But from the excerpt you made above it is clear that they wanr to focus on high grow region. Nigeria appears to be the very opposite of a "high growth" region. Nigeria is very volatile at the moment.

Dingg!!!

Mpeace:
Although not stated. But from the excerpt you made above it is clear that they wanr to focus on high grow region. Nigeria appears to be the very opposite of a "high growth" region. Nigeria is very volatile at the moment.

True

... besides, major western companies have pledged to reduce their stakes in high carbon products like ours, though I am not sure, may be a condition for successful US listing they planed next year.

WAPCO. 67m +

Chaii!! That's like N125? Ol boy!!

Sunrisepebble:
RE: Wapco, same source that gave initial gist. Says he has a document that shows the Chinese company want 100% and they will pay the same price per share. He doesn’t think it’ll go above that


Wow- 98 million bids
NFA/ DYOR

Sunrisepebble:
RE: Wapco, same source that gave initial gist. Says he has a document that shows the Chinese company want 100% and they will pay the same price per share. He doesn’t think it’ll go above that


Wow- 98 million bids
NFA/ DYOR

From HUAXIN Cement document that I read, it says 100% of HOLCIM shares and not 100% of the whole Larfarge WAPCO shares....
100% of HOLCIM shares is about 83.81% of the target Company, which is HOLCIM......valued @USD838.13million.

Just trying to say the meaning I read to the doc as well.....i know yours na inside info.

Meanwhile, WAPCO was on fullest bid @63.80!!

Those offers that didn't get picked up last week Friday will be thanking their stars while those that panic sold @57/58 will be blaming themselves....
This life no balance .....