Lafarge Africa Rights Issue Facts

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Lafarge Africa Opened its Rights Issue on 25th November 2017 which will run through 15th December 2017.

Lafarge Africa Plc Rights Issue of 3,097,653,023 Ordinary Shares of 50kobo Each at ₦42.50 Per Share
Issue Price N42.50
Opening Date: 25th November 2017
Closing Date 15th December 2017
Underwriting status: Nil

Purpose of the Issue:
The Rights Issue is being undertaken to enable Lafarge Africa Plc optimise its capital structure by deleveraging its balance sheet, thereby reducing costs.

Use of Proceeds:
Net Issue proceeds estimated at N130,298,062,609 will be applied towards the repayment of the Company’s various outstanding loan obligations.
Finance Working Capital
Expansion of Operation

The fund would be applied as follows assuming full subscription:

  • 71.35% for the payment of loan
  • 13.80% to support Working Capital
  • 13.80% for Expansion of Operations
Benefit to Shareholders.

  • The Rights is currently being offered at a discount of ₦42.50 .i.e 15% of the current market price of ₦50.00.
  • The payment of the debt would reduce the interest burden of the company up to an estimated 90.30%, improve earnings per share (EPS) by equivalent percentage and it is assumed that the probability of paying out good dividend enhanced.
Estimated Success Rate

Association of International Cement Ltd own 29.27% of issued and fully paid-up share capital of the Company, CariCement B.V 28.16%, Lafarge Nigeria Limited 13.93%, Ashakacem Plc 1.53%, Oduá Investment Company Limited 2.99% and Stanbic Nominees Nieria Limited 4.49%. We belief all the aforementioned major holders would take up their Rights. These translate to a success rate of 80.37% without other minority Share Holders.  

Market Capitalisation @ Issue Price ₦236,970,456,285.10 (Pre-Issue)

Share Outstanding Pre-Issue 5,757,775,217

Market Capitalisation @ Issue Price ₦368,620,709,762.50 (Post-Issue)

Share Outstanding Post-Issue 8,673,428,240


Installed Cement Capacity and Subsidiaries 12M Metric Tonnes

Installed Cement Capacity Location
Lafarge Nigeria 4.5m MT Ogun State
Atlas Cement Company Ltd 500 thousand MT River State
Ashaka Cement 1m MT Gombe State
United Cement Company of Nigeria 2.5m MT Cross River
Lafarge South Africa 3.6m MT South Africa


Five Years Dividend History

Year             Amount N
2017                           1.05
2016                           3.00
2015                           3.06
2014                           3.30
2013                           1.20

Facts of the Issue

Ø  One of the biggest ever Rights Issue by a foreign affiliate Company in Nigeria
Ø  The Rights Issue of 3,097,653,023 new Ordinary Shares is 36% of the Share Capital



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