LAFARGE

Lafarge Group has announced its intention to transfer all of its shares in its businesses in Nigeria and South Africa into Lafarge Cement WAPCO Nigeria Plc (“Lafarge Wapco”). When finalized, Lafarge Cement WAPCO Nigeria Plc will be renamed Lafarge Africa Plc (“Lafarge Africa”) and will be strongly positioned to benefit from growth and development opportunities in Nigeria and Southern Africa. Lafarge Africa, owned 73% by Lafarge Group, will remain listed on the Nigerian Stock Exchange.
The  new entity will have nationwide coverage in both Nigeria and South Africa, with cement capacity of about 12 million tonnes, as well as operations in aggregates, ready-mix and fly ash. The strong operational track record and management skills within the combined businesses as well as continued support and expertise from Lafarge Group will position Lafarge Africa to offer a full range of value added solutions to meet customers’ needs.

Under the proposed terms, Lafarge Group will transfer its direct and indirect shareholdings in Lafarge South Africa Holdings (Pty) Limited (100.00% – representing 72.4% of underlying companies in South Africa), United Cement Company of Nigeria Limited (35.00%), Ashakacem Plc (58.61%) and Atlas Cement Company Limited (100.00%) to Lafarge Wapco. The transaction will be concluded through a cash consideration of US$200m and the issuance of 1,402,575,984 Lafarge Africa shares to Lafarge Group.

According to Reuters, country chief executive officer said on Tuesday. Guillaume Roux said the deal, worth $1.35 billion, will see the Lafarge group get $200 million in cash and 1.4 billion new shares in Lafarge Wapco to effect the merger.

The new company, Lafarge Africa Plc, will have a market capitalisation of more than $3 billion and will be listed on the Nigerian Stock Exchange, Roux told a news conference. Lafarge group will own 73 percent of the combined entity. The combined company would seek to boost capacity by 5.5 million tonnes to 17.5 million tonnes after the merger.
The transaction is subject to Lafarge Wapco shareholder approvals and obtaining required regulatory and other customary authorizations. The Group anticipates completion during H2 2014.

Lafarge Wapco shares was basically flat today.

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