Lafarge Africa, today submitted an application to the Nigerian Stock Exchange (NSE) for the approval and listing of a proposed rights issue.
Here are key highlights of the proposed rights issue.
- The company is offering 3,097,653,023 Ordinary Shares of 50 Kobo each at N42.50 kobo per share on the basis of 5 new ordinary share for every 9 ordinary shares held. To know how many shares you will get simply divide the number of shares you currently own by 9 and multiply by 5.
- The Qualification Date for the Rights Issue is today, Wednesday, 1 November 2017. Qualfication date means shareholders holding the company’s shares today, will be entitled to the rights.
- Proceeds from the rights issue (N131.6 billion) will be used to pay off existing debts to its parent company. Lafarge has about N250 billion in external debts
- Lafarge shares closed at N50 in today’s trading session, meaning the rights issue is at a discount of 15% to its current price.
- Lafarge’s parent company, and majority shareholders, Lafarge Holcim Ltd signaled their intention to fully subscribe to shares that will accrue to them for the rights issue. They own 73% of the shares of the company.
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