As part of its ambition to grow in Nigeria, Lafarge Africa will attempt to further strengthen the company with a new rights issue.
The proposed plan will attempt to raise NGN 90 billion via a Rights Issue, as well as through the restructuring of Lafarge Africa’s outstanding US$315 million of short term shareholder loans. Shareholders approved the plan to raise NGN 90 billion in additional capital at a general meeting held in Lagos in late September 2018.
Lafarge Africa has predicted a stable pricing environment and favourable economic conditions in its Nigeria market, while its South Africa operations are undergoing a turnaround plan.
“The additional capital to be raised will further help to deleverage the company’s balance sheet and provide head room for the expansion of our business,” said Mobolaji Balogun, Chairman of the Board of Directors at Lafarge Africa.
“[The refinancing plan] is aimed at preparing for future development in Nigeria, improving the company’s leverage, and strengthening its profitability,” said Michel Puchercos, CEO of Lafarge Africa.
Lafarge Africa Plc is a member of the LafargeHolcim Group, the biggest building and concrete solutions company in the world.