NIGERIAN STOCK MARKET ANALYSIS

TRW DAILY FUNDAMENTAL AND TECHNICAL ANALYSIS OF THE NIGERIAN STOCK MARKET

Lafarge Africa shareholders approve N140bn rights issue

Posted by TRW STOCKBROKERS LTD on June 8, 2017
Posted in: Uncategorized.

Stanley Opara

The shareholders of Lafarge Africa Plc have approved a N140bn rights issue by the building solutions provider to its existing shareholders during its Annual General Meeting held in Lagos on Wednesday.

The rights issue process is expected to be launched after the approval of the transaction.

Speaking at the AGM, the Chairman, Board of Directors, Lafarge Africa, Mr. Mobolaji Balogun, said subscription to the rights issue would take place by the beginning of Q3 2017, and is expected to be finalised by October at the latest.

LafargeHolcim, the company’s largest shareholder, is expected subscribe to its rights by converting the existing debt into equity.

Commenting on the rights issue, the first since 2005, Balogun noted that the decision of LafargeHolcim to convert existing loans into equity “demonstrates the group’s continued belief in the Nigeria story,” adding that, “This is the largest rights issue and the largest investment in a listed company by an investor.”

The company said it was embarking on the rights issue to reduce its exposure to adverse foreign currency translation losses as experienced in 2016 following a 40 per cent depreciation of the naira against the United States dollar.

While listing the benefits of the recapitalisation exercise, the Lafarge chairman said, “It reduces our foreign currency exposure by 50 per cent. The remaining portion of the debt, with the support from LafargeHolcim, has been refinanced and hedged for 12 months.”

Also commenting on the development, the Country Chief Executive Officer, Lafarge Africa, Michel Puchercos, said that the acquisition of Unicem in 2016 was in line with the company’s capacity expansion plans.

Puchercos noted that the doubling of the production capacity of the Mfamosing plant in Calabar to five million metric tonnes per annum had “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.”

Advertisements

Share this:

  • Twitter
  • Email
  • Facebook
  • LinkedIn
  • Pocket
  • Google
  • Reddit
  • CHATROLL
  • Pinterest
  • Telegram
  • Tumblr
  • Skype
  • WhatsApp

Like this:

Like Loading...

Related

Posts navigation

← Lafarge to embrace biomass for power supply
Preparing security/collateral for bank loan (9): Cash Security/Letter Of Set-off →
  • Blog Stats

    • 1,343,390 hits
  • LIVE CHATS

    TRW STOCKBROKERS - Join Now! (LIVE WordPress Chat)

  • Categories

  • Recent Posts

    • Stock To Watch Next Week: GLAXOSMITH
    • Is The Short-Term Rebound In NGSEO&G (alias Bond Market Quasi Index) A Bull Trap ???
    • Bond Yields close relatively stable amid slight profit taking by offshores….
    • Nigeria loses N2.5b yearly to gas flaring….
    • SEC Partners IFC, AFDB On Sukuk Investment- Uduk
    • Nigeria’s debt level under control – Adeosun tells IMF
    • Stock market shed N41bn on 33 companies losses
    • FGN SAVINGS BONDS – BUY & SELL EVERYDAY FROM THE NGSE SECONDARY BOND MARKET…
    • Afrinvest Weekly Update – World Economic Outlook: IMF Reiterates Expectation of Synchronized Growth Expansion
    • MTN selects Nigerian brokers for planned IPO…..
  • Top Clicks

    • trwstockbrokers.files.wor…
    • trwstockbrokers.files.wor…
    • trwstockbrokers.files.wor…
    • trwstockbrokers.files.wor…
    • trwstockbrokers.files.wor…
    • trwstockbrokers.files.wor…
    • trwstockbrokers.files.wor…
    • trwstockbrokers.files.wor…
    • trwstockbrokers.files.wor…
    • trwstockbrokers.files.wor…
  • Recent Comments

    ARMF Project on Guaranty Trust Bank Plc: Relia…
    Nome Simeon N. on Guaranty Trust Bank Plc: Relia…
    ARMF Project on GSK’s ₦8.2 billion Special div…
    Adenike Taiwo on GSK’s ₦8.2 billion Special div…
    Adeyemi Oloyede on Bottom Line: C&I Leasing i…
  • Enter your email address to follow this blog and receive notifications of new posts by email.

    Join 3,231 other followers

  • RSS NIGERIAN STOCK EXCHANGE MARKET ANALYSIS

    • Stock To Watch Next Week: GLAXOSMITH April 21, 2018 ARMF Project
    • Is The Short-Term Rebound In NGSEO&G (alias Bond Market Quasi Index) A Bull Trap ??? April 21, 2018 ARMF Project
    • Bond Yields close relatively stable amid slight profit taking by offshores…. April 21, 2018 ARMF Project
    • Nigeria loses N2.5b yearly to gas flaring…. April 21, 2018 ARMF Project
    • SEC Partners IFC, AFDB On Sukuk Investment- Uduk April 20, 2018 TRW STOCKBROKERS LTD
    • RSS - Posts
    • RSS - Comments
  • Advertisements
Create a free website or blog at WordPress.com.
loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.
%d bloggers like this: