Ashaka board recommends Lafarge buy-out offer to minority shareholders

The board of directors of Ashaka Cement has advised minority shareholders to accept the buy-out mandatory tender offer (MTO) by Lafarge Africa.

Lafarge Africa has offered to buy out minority shareholders in Ashaka Cement following the merger of Lafarge's Nigerian and South Africa's businesses.

Under the offer, Lafarge Africa is making an MTO to minority shareholders to buy 927 million shares, representing 41.39 per cent of the company. Shareholders who accept the offer will receive 57 Lafarge Africa shares for every 202 held in Ashaka Cement. Lafarge Africa is offering to pay an additional NGN2/share to the shareholders. The offer is expected to close on 16 January 2015.

In his letter to shareholders, Alhaji Umaru Kwairanga, chairman of Ashaka Cement, said the board has reviewed the offer and its benefits to all shareholders of the cement producer, saying that it considers the offer to be fair and is happy to to recommend it to shareholders.

"Additionally, we consider the offer an opportunity for our shareholders to share share in the fortunes of the growth platform which Lafarge Africa represents. Upon completion, its planned expansion projects, Lafarge Africa will have 17.5Mta of cement capacity and an increased range of products and services, positioning it strongly to meeet the growing and changing demand for building materials in sub-Sahara Africa," Mr Kwairanga added.