Lafarge Cement Wapco Nigeria Plc has notified the Nigerian Stock Exchange (NSE) that its parent company, Lafarge SA (France) and Holcim Ltd (a company organised under the laws of Switzerland) has announced the formal signing of the combination agreement, marking the conclusion of the merger terms they announced on April 7, 2014.
The company said, the combination remained conditional upon the required regulatory and other customary consultations and approvals, adding that the closing of the planned merger is expected in the first half of 2015.
The merger is aimed at creating the most balanced and diversified portfolio in the industry, operation in 90 countries and creating superior value for its stakeholders.
Lafarge Cement Wapco Nigeria Plc further informs that this combination agreement and closing of the planned merger will not impact the direct shareholding of Lafarge Cement Wapco Nigeria Plc.
It could be recalled that Lafarge Wapco is on the verge of merging its Nigerian and South African operations in a bid to create a new company to be known as Lafarge Africa Plc.
The new company will consolidate all Lafarge’s shares in its businesses in Nigeria (AshakaCem, UniCem and Atlas) and South Africa to Lafarge Wapco.
The consolidation transaction will be concluded through a cash consideration of N32.4 billion ($200 million) and the insurance of 1.4 billion Lafarge Africa shares to the Lafarge Group making Lafarge Africa Plc to have a market capitalisation of N486 billion ($3 billion) and would be the sixth largest Nigerian Stock Exchange (NSE) listed company.
Already, shareholders of the company had at their AGM in Lagos last week approved N100 billion fresh capital for the company to enable it consolidate its business in Africa.
The N100 billion fresh capital will be raised through a public offer of debt and equity in the domestic and international capital market.