Lafarge Africa receives shareholder approval for NGN90bn rights issue

Lafarge Africa has received shareholder approval to raise NGN90bn (US$246.93m) of capital through a rights issue and to restructure its short-term shareholder loan.

“The additional capital to be raised will further help to deleverage the company’s balance sheet and provide head room for the expansion of our business,” said Mobolaji Balogun, chairman of the board, Lafarge Africa.

Michel Puchercos, CEO, stated that the company’s refinancing plan is aimed at preparing for future development in Nigeria.

“Cement demand has been on the rise since the beginning of 2018. We saw a 22 per cent increase in volume, benefiting from exports to Ghana which began in 4Q17. Earnings before interest tax, depreciation and amortisation (EBITDA) for our Nigeria operations was NGN19.1bn and EBITDA margin of 32.2 per cent, thanks to robust operational performance and continuous effort to reduce cash costs,’’ said Mr Puchercos.