1. Nigerian Cement Holdings B.V. (NCH), a 50% affiliate of Lafarge Africa Plc is the SPV that has entered into an agreement with Flour Mills of Nigeria (FMN), for the purchase of Flour Mills of Nigeria’s 30% investment in United Cement Company of Nigeria Ltd (UNICEM).
2. The transaction, comprising the sale of shares and the transfer of loans is structured in 2 approximately equal tranches – with first tranche payable during first quarter 2015 and the second tranche due no later than 29th February 2016, at a price ranging between N47 and N55 billion, depending primarily on the effective dates of payment and prevailing USD/Naira exchange rate at the time of payment.
3. This effectively places Unicem at a valuation of about N156-N183 billion. Lafarge Africa has a market cap of N343billion. According to Lafarge, the valuation agreed for Unicem as the basis for this transaction is consistent with its fair market value and the valuation of Unicem in the previous transfer to Lafarge Africa.
4. Management of Unicem will continue to be shared between Lafarge and Holcim and FMN will retain its representation on the Board of Directors until the second tranche of the transaction is consummated.
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5.NCH currently has 70% share interest in Unicem. Upon completion of this transaction NCH will have a 100% stake in Unicem.