According to reports, Lafarge Africa is set to make an offer to buy out the minority shareholders of Ashaka Cement, its Nigerian business. Earlier this year, Lafarge merged its Nigerian and South African businesses into Lafarge Africa, at which point the combined entity acquired a stake in Ashaka Cement of 58.61%, triggering a mandatory tender offer (MTO) in accordance with the rules of the Nigerian Stock Exchange. Lafarge Africa will therefore make an offer worth US$122 million to Ashaka Cement’s minority shareholders, wherein the latter would receive 57 Lafarge Africa shares for every 202 shares held in Ashaka Cement and an additional cash payment of NGN23.99. The offer will be made tomorrow, 10 December, and will run until 16 January.
Analysts at FBN Capital Limited commented that the share offer was about 2% below Ashaka’s last trading price and about 36% below the implied price paid by Lafarge when it formed Lafarge Africa.
Edited from various sources by Katherine Guenioui
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