Cement giant Lafarge Africa in a notice sent to the Nigerian Stock Exchange (NSE), today has indicated its intentions to raise N89 billion through a rights issue.
Terms and details of the offer were decided following an emergency meeting of the company’s board of directors held yesterday.
Shareholders at an Extra Ordinary General Meeting held on the 25th of September, 2018 gave approval for the rights issue.
Terms of the Issue
Lafarge Africa Plc will raise N89.21billion by way of a Rights Issue at N12.00 per share, by issuing 6 new shares for every 7 shares held by shareholders at the Qualification Date, which will be announced.
The Rights Price represents a 10.45% discount on Lafarge Africa’s traded closing price of N13.40 as at Monday, 3rd December 2018.
The regulatory approval process for the rights issue is ongoing. Results for the nine months ended September 30 2018, show revenue increased from N223 billion in 2017 to N234 billion in 2018.
The firm made a loss before tax of N14.3 billion in 2018, as against a profit before tax of N1 billion for the corresponding period of 2017.
Loss after tax stood at N10.3 billion as against a profit after tax of N937 billion made in the corresponding period of 2017.