- Lafarge Africa Rises to Three Week High
The stock price of Lafarge Africa rose to a three-week high on Thursday after the company announced plans to sell its South African business.
Lafarge Africa gained 9.95 percent to N10.50 on Thursday despite trading at Wednesday’s price for most part of the day before suddenly rising at about 2:11 pm Nigerian time.
This was after the company had announced the proposed sale of 100 percent issued share capital in Lafarge South Africa Holdings Limited to Caricement B.V on Wednesday.
The company also said the South African unit has accumulated debt of about N70 billion.
According to the company, the South African business unit will be sold for $316.3 million, representing the total sum of the principal of $293 million and the accrued interest of $23.3 million as of July 31, 2019.
In the statement released on Wednesday through the Nigerian Stock Exchange, the company said: “The board arrived at the conclusion that the disposal of LSAH was the best option for halting the potential impairment.
“The proposed sale is expected to enhance the value of shareholders’ investments, which is of utmost importance to the board. Following the conclusion of the proposed sale, the shareholder loan of $293m will be completely extinguished.”
The deal would be closed once all requisite regulatory approvals are received.
“From the effective date of the sale, Lafarge Africa will cease to own the 100 per cent equity interest in LSAH, which will be transferred and relinquished to Caricement. Accordingly, from that date, Lafarge Africa will have no obligations or interests regarding LSAH and the accounts of LSAH will no longer form part of Lafarge Africa’s consolidated accounts.”
