Lafarge Nigeria seeks 100bn naira after African merger
The Nigerian unit of French cement marker Lafarge plans to seek shareholders’ approval in July to raise 100-billion naira in public offer of debt or equity, Lafarge Wapco said on Wednesday.
The cement company said it would raise the fresh capital in the local and international market.
Lafarge announced plans late on Tuesday to combine its South Africa business with publicly traded Nigerian unit Lafarge Wapco, in a deal worth $1.35-billion, and listing its Africa interests together on the Nigerian bourse.
Shares in Lafarge Wapco surged the maximum 10% allowed on the Nigerian bourse on Wednesday 124.02 naira ($0.76) per share. Ashaka Cement, another listed Lafarge unit in Nigeria involved in the merger, also climbed the maximum 10% allowed.
The merger deal which will give Lafarge’s Nigerian unit a market capitalisation of over $3-billion on the Nigerian bourse, is subject to shareholders’ approval in July.