In December, World Cement reported that Lafarge Africa would make an offer to buy out the minority shareholders of Ashaka Cement, a mandatory move triggered by the merger of the group’s Nigerian and South African businesses, which brought Lafarge’s stake in Ashaka Cement to 58.61%. Lafarge offered 57 Lafarge shares for every 202 shares held in Ashaka Cement in addition to a cash offering. The closure date for the mandatory tender offer (MTO) has been extended to 23 January and analysts at ARM Securities Limited have told This Day Live that the deal is highly favourable to minority shareholders.
“Whilst our positive investment view on the swap of Ashaka for WAPCO shares can be executed in one of two ways: selling Ashaka at market and using the proceeds to acquire Lafarge Africa shares or accepting the MTO, analytical results clearly favours the latter,” they are quoted as saying. The Board of Directors of Ashaka Cement has also encouraged shareholders to accept the MTO.
Meanwhile in India it is being reported that Lafarge is buying back the 14.03% stake in its domestic unit, Lafarge India, which is currently held by Baring Private Equity. The share agreement made when the deal was done in 2013 reportedly includes a clause triggering a buyback in case of a change to the shareholding structure, which of course is the case with the planned merger or Lafarge and Holcim. Lafarge is reported to have assured Barings an IRR of 15% and a commitment to buy back the stake within five years. The merger is currently being scrutinised by the Competition Commission of India, having received approval in Europe and elsewhere.
Edited from various sources by Katherine Guenioui
Read the article online at: https://www.worldcement.com/africa-middle-east/21012015/lafarge-share-news-in-india-and-nigeria-178/