Lafarge shareholders seek diversity in Board restructuring

Approve N140bn Rights Issue

By Nkiruka Nnorom

SHAREHOLDERS of Lafarge Africa Plc have urged the company to ensure that there is diversity and enough geographical spread in the proposed board restructuring, even as they approved the plan by the company to raise N140 billion through Rights Issue.

The shareholders also approved the proposed N5.8 billion dividend by the Board and the plan by the company to liquidate Egyptian Cement Holdings and Nigeria Cement Holdings and transfer their assets to Lafarge Africa among other resolutions.

Giving the approvals at the 58th Annual General Meeting, AGM, in Lagos, they said that reducing the number of the board members from 17 to 11 as being proposed by the company is commendable as it would reduce cost. The trio of Sir Sunny Nwosu, Patrick Ajudua and Chief Timothy Adesiyan, who spoke on behalf of other shareholders, urged the company to ensure that different sections of the shareholders, especially Nigerians, are given adequate representation on the Board. They also emphasised the need to ensure that only qualified people are appointed to the position.

Addressing shareholders at the meeting, the chairman, Mobolaji Balogun, said that the Rights Issue would reduce the company’s foreign exchange, FX, exposure by 50 per cent, including the dollar debt used for acquisition of Unicem. He noted that subscription for the offer is expected to open next quarter after all the regulatory approvals are secured.

According to him, Lafarge Holcim, its largest shareholder, would subscribe to its rights by converting the existing debt into equity, saying that the move “demonstrates the Group’s continued belief in the Nigeria story.”  He noted that the remaining portion of the debt, with the support from LafargeHolcim, has been refinanced and hedged for 12 months. Michel Puchercos, Country CEO, Lafarge Africa, stated that the acquisition of Unicem in 2016 was in line with the company’s capacity expansion plans.

He noted that doubling of the production capacity of the Mfamosing plant in Calabar to five million metric tonnes per annum has “contributed significantly to Lafarge Africa’s capacity and footprint in Nigeria.”

; provides an opportunity to increase our share of the cement market in the South East and South regions, and has begun to impact positively on the financial results of the company.”

The post Lafarge shareholders seek diversity in Board restructuring appeared first on Vanguard News.