Cement Firm, Lafarge To Raise 89 bln Naira in Rights Issue
By Olumidagreaton December 4, 2018
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Lafarge Africa Plc, one of the continent’s biggest cement maker plans to raise 89.21 billion naira in a rights issue at 12 naira per share, the company said on Tuesday.
The Board of the cement firm approved the proposal at its meeting on Monday to raise more capital to shore up the operations of the company.
In a letter to the Nigerian Stock Exchange (NSE), Lafarge said; “Following the resolution of our Shareholders passed at the Extra-Ordinary General Meeting held on the 25th September 2018, the Board of Directors have approved the terms of the Rights Issue.”
Shareholders of Lafarge Africa had in September approved the proposal by the company to raise 90 billion naira via a Rights Issue and the restructuring of its outstanding short-term $315 million shareholder loans.
The Shareholders at an extra-ordinary meeting three months ago gave its nod for a proposal to raise 90 billion naira in fresh capital from the existing shareholders of the company.
The company had said the proposed rights would enable the cement firm to deleverage the company’s balance sheet and provide headroom for the expansion of our business.
The board resolution also revealed that Lafarge has commenced the process of seeking regulatory approval for the rights.
At 12 naira per share, the price for the rights represents a discount of about 10.45 percent on the company closing price on Monday.