Lafarge Africa to create 10b new shares

Lafarge Africa Plc plans to create additional 10 billion ordinary shares of 50 kobo each to increase its authorised share capital to 20 billion ordinary shares.

The cement company will thereafter float a rights issue to raise N90 billion.

In a regulatory filing yesterday, Lafarge Africa stated that shareholders of the cement company have been invited to an extraordinary general meeting next month to consider resolutions on the creation of additional shares and the rights issue among other proposals.

Lafarge Africa currently has authorised share capital of N5 billion consisting of 10 billion ordinary shares.

Shareholders are expected to authorise the board of the company to “raise capital of N90 billion by way of a rights issue of ordinary shares to its shareholders  and that the rights issue be executed at such price, time, for such period and on such other terms and conditions as the directors may deem fit”.

Also, the meeting is expected to consider granting the board the authority to “apply any convertible loan, shareholder loan or any other loan facility due to any person, from the company, as may be agreed by the person and the company, towards payment for any shares or rights subscribed for in the rights issue”.

Shareholders are also expected to consider a resolution authorising the company to enter into a related party transaction to accept loan facility from LafargeHolcim, the foreign majority core investor which holds 76.32% equity stake.