Lafarge Africa commences N89.2billion rights issue

Cement giant Lafarge Africa Plc has opened its ₦89.2 billion rights issue. The firm disclosed this, in a notice sent to the Nigerian Stock Exchange (NSE).

The offer opened on Monday 17th December 2018 and will close on Wednesday 23rd January 2019.

Lafarge Africa will be issuing 6 new shares for every 7 shares held by shareholders as at 4th December 2018 which is the qualification Date. A total of  7,434,367,256 shares will thus be issued at ₦12 per share.

The company had earlier this month sent a notice to the NSE, indicating its intentions to raise funds through a rights issue. An Extra Ordinary General Meeting (EGM) was held in September, where shareholders gave approval. Lafarge Africa closed at ₦11.95 in yesterday’s trading session on the NSE, down 4.02%.

Results for the nine months ended September 30, 2018, show revenue increased from ₦223 billion in 2017 to ₦234 billion in 2018. The firm made a loss before tax of ₦14.3 billion in 2018, as against a profit before tax of ₦1 billion for the corresponding period of 2017.

Loss after tax stood at ₦10.3 billion as against a profit after tax of ₦937 million made in the corresponding period of 2017.