Lafarge Group has announced its intention to transfer all of its
shares in its businesses in Nigeria and South Africa into Lafarge Cement
WAPCO Nigeria plc to create a mega continental group and a leading
sub-Saharan African building materials platform.
Chief Olusegun Osunkeye, Chairman, Lafarge WAPCO, announced this in Lagos Tuesday.
He
said the company is combining its Nigeria and South Africa businesses
with a combined cement capacity around 12mtpa, as well as operations in
aggregates, ready mix concrete and fly ash.
When finalised, he disclosed, Lafarge Cement WAPCO Nigeria plc will be renamed Lafarge Africa plc.
“I
am proud to be part of the creation of this leading African building
materials platform. The fusion will provide access to growth in two of
the largest economies on the continent,” Osunkeye told P.M.NEWS.
He
stated that Lafarge Africa, owned 73 per cent by Lafarge Group, will
remain listed on the NSE, and it will be strongly positioned to benefit
from growth and development opportunities in the two countries.
Their combined businesses annual sales in 2013 totaled US$1.25bn and EBITDA of US$345mn.
Under
the proposed terms, Lafarge Group will transfer its direct and indirect
shareholdings in Lafarge South Africa Holdings (Pty) Limited (100.00
per cent-representing 72.4 per cent of underlying companies in South
Africa), United Cement Company of Nigeria Limited (35.00per cent),
Ashaka Cement Plc (58.61per cent) and Atlas Cement Company Limited
(100.00per cent) to Lafarge WAPCO.
Guillaume Roux, Executive Vice
President, Operations and Country CEO Nigeria, Lafarge Group, added that
the announcement marked a key milestone as it adds momentum to the
group’s push for differentiation in order to deliver innovation that
will increase and improve the company’s product portfolio.
Roux
said the deal, worth $1.35 billion, will see the Lafarge group get $200
million in cash consideration and the issuance of 1,402,575,984 Lafarge
Africa new shares to Lafarge Wapco to effect the merger.
The
Country CEO said he expected the deal, which is still subject to
shareholders’ and regulatory approvals, to close in the second half of
the year.
“Our objective is to bring more housing and contribute
to building better cities that are more beautiful, more compact, more
connected and more durable,” he said.
The combined company would seek to boost cement capacity by 5.5 million tonnes to 17.5 million tonnes after the merger.
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