The N89.2 billion rights issue by cement manufacturer, Lafarge Africa Plc, will finally close today after it was extended beyond the January 23rd date it was initially planned to end.
As Nairametrics earlier reported, the company’s latest right issue entails six new shares for every seven shares already held by shareholders as at 4th December 2018, which was set as the qualification date. In total, about 7.4 billion units of shares were issued at ₦12 per share.
As The Nation has observed, this is the second rights issue by Lafarge Africa Plc in the past fourteen months. In November 2017, about 3.1 billion units of ordinary shares (valued at 50 kobo each) were issued at N42.50 per share.
The latest issue is said to be structured in the same way as the November 2017 issue, including a convertible deal which can allow Lafarge Holcim, the company’s main investor, to convert debts into equities.
While speaking earlier on the latest rights issue, the company’s Chairman, Mr Mobolaji Balogun, had stated that the capital raise would enable Lafarge Africa to reduce its level of indebtedness, whilst ensuring the expansion of its operations.
He also expressed optimism for a favourable pricing economic conditions in Nigeria, even as the South African arm of the company continues to struggle to find its footing.
Also, the company’s Chief Executive Officer, Mr Michael Pucheros, stated that the right issue by Lafarge Africa Plc will facilitate future development efforts in Nigeria, which will ultimately ensure profitability.
Lafarge Africa Plc is a leading cement manufacturer which was incorporated on February 24th, 1959. The company, whose market capitalisation currently stands at N108,417,853,000.00, is listed on the NSE’s premium board.
The company’s financial statement for the third quarter period ended September 30, 2018, shows that revenue increased from ₦223 billion in 2017 to ₦234 billion in 2018.
The company, however, reported a loss after tax of ₦10.3 billion as against a profit after tax of ₦937 million made in the corresponding period of 2017.
The company’s stock is currently trading at N12.5 on the floor of the Nigerian Stock Exchange.