Lafarge Africa raises fresh capital to tackle rough patch

Lafarge Africa Plc said it has raised fresh capital from its existing shareholders through a rights issue that was 100 per cent subscribed.

In a press statement the company issued, yesterday, to the Nigerian Stock Exchange (NSE), the company also described the rights issue as “a success”.

Details of the rights issue

N89.212 billion was raised: The company issued a total of 7.434 billion units of ordinary shares of 50 kobo each, at the rate of N12.00 per share. And from the issued units, the total sum of N89.212 billion was realised.  from existing shareholders.

“following lafarge africa plc (“lafarge africa” or “the company”) rights issue of 7,434,367,256 ordinary shares of 50 kobo each on the basis of six (6) ordinary shares for every seven (7) ordinary shares held as at december 4, 2018 at n12.00 per share on which opened on december 17, 2018 and closed on january 28, 2019, a total of 1,826 acceptances for 7,434,367,256 units valued at n89,212,407,072 were received in connection with the rights issue.”

This is the second rights issue by Lafarge Africa Plc in two years

While explaining the recent right issue which was approved last September, Lafarge Africa disclosed that a total of 1,826 applications for 7,434,367,256 ordinary shares were accepted and were found valid under the terms of the issue and were processed accordingly.

Previous right issue: Lafarge Africa had raised N132 billion the previous year having issued 3.1 billion ordinary shares of 50 kobo each at N42.50 per share.

Motive for the fresh capital

Lafarge Africa believes the refinancing will facilitate the company’s profitability, even as it plans for long-term development in Nigeria, the company’s Chief Financial Officer said.

Also commenting on the successful rights issue is the company’s Chairman of board, Mr Nobolaji Balogun. According to him, the additional capital will deleverage the company’s balance sheet and fast-rack expansion.

Unfavourable financial performance: Shareholders are currently awaiting the release of the company’s financial for full-year 2018. So far, it announced a turnover of N234.30 billion in Q3 2018, an increase from N223.67 billion in Q3 2017. However, loss after tax stood at N10.37 billion as against N937.91 million in the comparable period in 2017.

About Lafarge Africa Plc

Lafarge Africa Plc is a subsidiary of LafargeHolcim, one of the biggest building and concrete solutions companies in the world. It is a publicly quoted company on the Nigerian Stock Exchange (NSE), where its stock is currently trading at N12.50.

Source:Nairametrics

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