By Adedapo Adesanya
The Swiss multinational firm, Holcim Group, has signed an agreement to sell its entire majority shareholding in Lafarge Africa Plc, listed on the Nigerian Exchange (NGX) Limited, to a Hong Kong company, Huaxin Cement, as it plans to leave Nigeria.
In a letter signed by the Company Secretary of Lafarge Africa, Mr Adewunmi Alode, the cement maker said Caricement and Associated International Cement Limited, the largest shareholders in Lafarge Africa, reached an agreement with Hainan Huaxin Pan-Africa Investment Company Limited and Huaxin (Hong Kong) International Holdings Limited, part of Huaxin Cement, on the transaction.
According to the statement, upon completion, the Huaxin Cement entities will hold a combined 83.81 per cent shareholding in Lafarge Africa Plc, though the deal is subject to regulatory approvals and is expected to close in 2025.
Through this transaction, Huaxin Cement will acquire full ownership of Caricement and a second entity, Davis Peak Holdings Limited, which will hold the shares currently held by Associated International Cement Limited (AICL)).
Following completion, Lafarge Africa Plc will remain listed on NGX, and, subject to regulatory approvals, Huaxin Cement intends to launch a mandatory takeover offer in compliance with applicable laws and regulations.
The new majority owners of the company would likely express an interest in buying out the minority shareholders in 2025 and delisting the company from the NGX.
This development was part of the key issues discussed and concluded at the emergency meeting of the board of Lafarge Africa Plc, held on Saturday, November 30th, 2024.
Lafarge Africa Plc, one of Nigeria’s major cement manufacturing companies, was incorporated on February 24, 1959, and listed as a publicly quoted company on the local stock market on February 17, 1979.
Lafarge serves Nigeria with a wide range of building and construction solutions designed to meet housing and construction needs from small projects like individual home buildings to major construction and infrastructure projects.
The organisation currently has an installed cement production capacity of 10.5 million tons per annum across four plants in Nigeria spread across Sagamu and Ewekoro, Ogun State (South-West), Ashaka, Gombe State (North-East) and Mfamosing, Cross River State (South-South).