Home Business News Lafarge seeks SEC's approval for rights issue allotment

Lafarge seeks SEC’s approval for rights issue allotment

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Barely a month after closing the acceptance list for its N89.2 billion rights issue, Lafarge Africa Plc is seeking Securities and Exchange Commission’s (SEC) approval for the adoption of allotment results.

The cement company’s Board has approved the proposed allotment for the rights issue, authorising the joint issuing houses to file the proposed allotment for clearance by SEC.

Recall that in December 2018, the Cement giant Lafarge Africa in a notice sent to the Nigerian Stock Exchange (NSE), indicated its intentions to raise N89 billion through a rights issue. Terms and details of the offer were decided following an emergency meeting of the company’s board of directors.

Nairametrics had reported that on Monday, January 28, 2019, the N89.2 billion rights issue Lafarge Africa Plc, closed after it was extended beyond the January 23 date it was initially planned to end.

This is, however, 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 was 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.

Terms of the Issue

Lafarge Africa Plc was expected to raise N89.21 billion by way of a Rights Issue at N12.00 per share, by issuing 6 new shares for every 7 shares held by shareholders at the Qualification Date.

The Rights Price represents a 10.45% discount on Lafarge Africa’s traded closing price of N13.40 as at Monday, 3rd December 2018.

About Lafarge

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.

Lafarge Africa is currently trading at N13.20 on the floor of the NSE.

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