Shareholders of Lafarge Africa has approved a plan to raise up to NGN90 billion (US$246.3 million) via a rights issues. Approval was given as an extraordinary general meeting on 25 September.
“The additional capital to be raised will further help to deleverage the company’s balance sheet and provide headroom for the expansion of our business,” said Mobolaji Balogun, Chairman of Lafarge Africa’s Board of Directors.
Shareholders also gave permission to restructure US$315 million in short-term shareholder loans.
The company said it expected a stable pricing environment and favourable economic conditions in Nigeria, while its operations in South Africa are undergoing a turnaround plan.
The refinancing plan is “aimed at preparing for future development in Nigeria, improving the company’s leverage, as well as strengthening its profitability,” said CEO, Michel Puchercos.
Read the article online at: https://www.worldcement.com/africa-middle-east/04102018/lafarge-africa-to-raise-ngn90-billion-in-rights-issue/