M a r k e t N e w s
Lafarge Africa Set to Buy-Out Minorities in Ashaka Cement
Posted on : Thursday, 11th December 2014
Lafarge Africa, the Nigerian unit of the French cement maker, Lafarge, is poised to make a cash offer valued at about $122 million to buy-out minority shareholders in its Nigerian business, Ashaka Cement, it emerged on Tuesday.
According to Reuters, the bid comes shortly after the $1.35 billion union of Lafarge Africa’s Nigerian and South African businesses, which has already gotten approval from shareholders in July this year.
Lafarge Africa this week said as part of this merger transaction it had bought a 30 percent interest in Ashaka Cement, Reuters quoted Lafarge Africa as having said.
Bulging rivalry
This, according to Reuters, had become a “trigger point” for making a fully-fledged takeover bid under Nigeria’s securities and takeover rules. The consolidation will allow Lafarge, which is confronted by a deepened rivalry in Africa, particularly from arch enemy the Nigeria-based Dangote Cement, owned by Africa’s richest man, Aliko Dangote.
Dangote Cement, Nigeria’s biggest listed company, with a market capitalisation of around $24 billion, is also rolling out cement plants across Africa, Reuters reported.
Lafarge Africa owns 60 percent of Lafarge Wapco, its listed unit in Nigeria. It also owns 58.6 percent of Ashaka Cement Plc while having a 100 percent shareholding in Atlas cement firm, according to Reuters.
Last month, Lafarge Africa entered into an agreement to buy a 30 percent shareholding in United Cement Company from Flour Mills of Nigeria, giving Lafarge’s Nigeria Cement Holdings total control.
Source : ventures-africa.com
