Lafarge Cement Wapco Nigeria Plc on has said the consolidation of its Nigeria and South Africa businesses would create
more jobs for Nigerians and enhance return on investment.
The company’s Head, Corporate Affairs, Mr
Ademola Ojowolo, told the News Agency of Nigeria (NAN) in Lagos that Lafarge
Africa’s consolidation of share holding was not aimed at jobs reduction but would also create more opportunities for employees and communities in the various countries through expansion of projects.
NAN reports that Lafarge had on June 3
announced plans to combine its Nigeria and South Africa businesses to create
Lafarge Africa to become a leading sub-Sahara Africa building materials
platform.
He said the company would be renamed
Lafarge Africa at the end of the transaction and would remain listed on the
Nigerian Stock Exchange.
In his comment, the Chairman of Lafarge
WAPCO, Chief Olusegun Osunkeye, said he was proud to be part of the creation of
the leading African building materials platform.
Osunkeye said that the exercise would
provide access to growth in two of the largest economies on the continent.
“It will mean that our shareholders are
investing in a larger and more geographically diverse business and it will
contribute significantly to the economic growth of both nations,” Osunkeye
said.
Lafarge Country Chief Executive Officer
Nigeria, Mr Guillaume Roux, described the consolidation as a key milestone that
would create value for shareholders adding that the decision would enable the
company to be more innovative, increase and improve its product portfolio.
He said, “Our objective is to bring more
housing and ever better solutions to contribute to building better cities that
are more beautiful, more compact, more connected and more durable.”
NAN reports that under the proposed terms,
Lafarge Group would transfer its direct and indirect share holdings in Lafarge
South Africa Holdings (Pty) Ltd.
The transaction will be concluded through a
cash consideration of 200 million dollars (over N32 billion) and the issuance
of 1.4 million Lafarge Africa shares to Lafarge Group and will be completed during the second half of
2014.
Lafarge Group also announced its intention
to transfer all its shares and businesses in Nigeria and South Africa into
Lafarge Cement Wapco Nigeria Plc.
The new entity, according to the company,
will have nationwide coverage in both Nigeria and South Africa with cement
capacity of about 12 million tonnes and operations in aggregates, ready-mix and
fly ash.
Chukwudi Obi
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