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Tag: Ashaka cement

  • Ashaka cement to invest N500m on host communities

    Ashaka cement to invest N500m on host communities

    Ashaka cement Gombe has pledged to invest the sum of N500 million  as Corporate Social Responsibility (CSR) on her three host communities in Funakaye Local Government Area of Gombe State.

    The three communities of Ashaka, Bajoga, and Bage yesterday formally entered into a 5-year Community Development Agreement (CDA) with the cement company.

    The Managing Director of Ashaka Cement Company, Ibrahim Aminu said the CDA encompasses a range of initiatives, including scholarships for community members, training and the provision of modern farming tools to local farmers, classroom construction, healthcare facility development, and water supply among others.

    “We are delighted to be signing the first CDA with our host communities in the company’s history. We want to reassure our host communities of our continued commitment to support the development of these areas. Even with the CDA in place, we remain dedicated to our Corporate Social Responsibility (CSR). We extend our gratitude to all stakeholders for their support in fostering peaceful coexistence with our host communities,” he said.

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    Gombe State Governor, Muhammadu Inuwa Yahaya, who presided over the signing of the CDA between Ashaka Cement Plc and host communities in Funakaye local government area, expressed satisfaction with the development.

    Represented by the Commissioner of Energy and Mineral Resources, Sanusi Ahmed Maidala, Yahaya described the signing of the CDA as a long anticipated development.

    “We are pleased to witness the long-anticipated signing of this Community Development Agreement. Through this agreement, we anticipate increased benefits for the host communities from the company’s presence in their area. Our commitment involves diligent oversight to ensure that all projects and programmes, as mutually agreed upon within this CDA, are fully carried out by the company,” he said.

    In his remark, the Commissioner of Justice and Attorney General of Gombe State, Barr. Zubair Muhammad Umar, said the CDA is mandatory upon companies.

    Chairman of the CDAs in Funakaye local government, Alhaji Bappah Jalo Bajoga, appealed to the company to comply with the agreement, assuring them of support towards ensuring the implementation of the projects and programmes contained in the CDA.

    Chairman of Funakaye Local Government, Ibrahim Adamu Cheldu, assured Ashaka Cement Company of more adequate security while appealing to them to keep to the promises made in the CDA.

  • Lafarge Africa buys out Ashaka Cement’s shareholders with 85.26m shares

    Lafarge Africa buys out Ashaka Cement’s shareholders with 85.26m shares

    Lafarge Africa Plc has issued and listed 85.26 million ordinary shares of 50 kobo each in the name of minority shareholders of Ashaka Cement (AshakaCem) Plc following the conclusion of share exchange agreement that seeks to fully consolidate the Gombe-based Ashaka Cement as a wholly-owned subsidiary of Lafarge Africa.

    Listing documents at the Nigerian Stock Exchange (NSE) yesterday indicated that a total of 85.26 million ordinary shares were listed in the name of Lafarge Africa Plc, raising the cement giant’s issued share capital from 5.491 billion ordinary shares of 50 kobo each to 5.576 billion ordinary shares of 50 kobo each.

    “The shares listed were issued to shareholders of Ashaka Cement in exchange for their shares in Ashaka Cement pursuant to a scheme of arrangement for capital re-organisation between Ashaka Cement and holders of its fully paid ordinary shares of 50 kobo each dated 26 September 2017,” the regulatory document indicated.

    Lafarge Africa had separately launched a Mandatory Tender Offer (MTO) and Voluntary Tender Offer (VTO) to acquire minority shares in AshakaCem. During the MTO and VTO, Lafarge Africa offered 57 new Lafarge Africa shares for 202 AshakaCem shares and a cash consideration of N2 per every AshakaCem exchanged.

    Shareholders of AshakaCem had at an extraordinary general meeting (EGM) in December 2016 approved the resolutions for a voluntary delisting of the company from the NSE. With the approval at the EGM, shareholders were given a 90-day window to decide on the exit plan on offer, in line with the requirements of the NSE on voluntary delisting.

    Within the 90-day period, shareholders had three options. They may decide to trade their shares on the NSE through their nominated stockbroker. Alternatively, shareholders may decide to receive consideration from Lafarge Africa in exchange for transferring their shares, on same terms as were for the MTO and VTO. On the other hand, shareholders may decide to retain their shareholdings in the unlisted AshakaCem.

    The board of Ashakacem said the voluntary delisting and full integration of the company as subsidiary of Lafarge Africa will offer minority shareholders many benefits, including revenue diversification by geography as a result of Lafarge Africa’s operations in Nigeria, South Africa and Ghana.

    Lafarge had on July 9, 2014 received shareholders’ approval to consolidate its cement businesses in Nigeria and combine these with South African operations to create a leading sub-Saharan building materials giant to be known as Lafarge Africa Plc. The consolidation was done by transferring Lafarge’s assets in South Africa and Nigeria to Lafarge Cement Wapco Nigeria Plc.

    Following the consolidation of Lafarge’s businesses in Nigeria and South Africa into Lafarge Africa, Lafarge Africa had acquired 58.61 per cent majority equity stake in Ashaka Cement. The majority equity stake was previously held by Lafarge Nigeria (UK) Limited. The acquisition was done through a block trade at the NSE.

  • NSE approves delisting of Ashaka Cement

    Authorities of the Nigerian Stock Exchange (NSE) have approved the delisting of Ashaka Cement Plc from the Exchange, paving the way for the subsidiary of Lafarge Africa to revert to a private limited liability company.

    The approval by the Quotation Committee of the Exchange capped a long-drawn process that had seen Lafarge Africa staking cash and shares in many tender offers aimed at acquiring minority shares in Ashaka Cement.

    Lafarge Africa had separately launched a Mandatory Tender Offer (MTO) and Voluntary Tender Offer (VTO) to acquire minority shares in Ashakacem. During the MTO and VTO, Lafarge Africa offered 57 new Lafarge Africa shares for 202 AshakaCem shares and a cash consideration of N2 per every AshakaCem exchanged.

    Shareholders of AshakaCem had at an extraordinary general meeting (EGM) in December 2016 approved the resolutions for a voluntary delisting of the company from the NSE. With the approval at the EGM, shareholders were given a 90-day window to decide on the exit plan on offer, in line with the requirements of the NSE on voluntary delisting.

    Within the 90-day period, shareholders had three options. They may decide to trade their shares on the NSE through their nominated stockbroker. Alternatively, they may decide to receive consideration from Lafarge Africa in exchange for transferring their shares, on same terms as were for the MTO and VTO. On the other hand, shareholders may decide to retain their shareholdings in the unlisted AshakaCem.

    The board of Ashakacem said the voluntary delisting and full integration of the company as subsidiary of Lafarge Africa will offer minority shareholders many benefits, including revenue diversification by geography as a result of Lafarge Africa’s operations in Nigeria, South Africa and Ghana.

    They added that shareholders also stand to benefit from revenue diversification by plant location due to wide spread operations across the Northeast, Southeast and Southwest regions of Nigeria.

    According to the board, through the voluntary delisting, the company, which current free float of 15.03 per cent is in violation of the NSE listing rule of a minimum of 20 per cent, will be shielded from any enforcement action or sanction that the NSE may impose due to the violation.

    They noted that a mandatory regulatory delisting that would have resulted from unresolved free float deficiency could damage the reputation of the company.

    Lafarge had on July 9, 2014 received shareholders’ approval to consolidate its cement businesses in Nigeria and combine these with South African operations to create a leading sub-Saharan building materials giant to be known as Lafarge Africa Plc. The consolidation was done by transferring Lafarge’s assets in South Africa and Nigeria to Lafarge Cement Wapco Nigeria Plc.

    Under the transaction, Lafarge Group transferred its direct and indirect shareholdings in Lafarge South Africa Holding Limited of 72.4 per cent and its equity in three other cement companies in Nigeria-United Cement Company of Nigeria Limited, 35 per cent, Ashaka Cement Plc, 58.61 per cent and Atlas Cement Company Limited, 100 per cent to Lafarge Wapco for a cash consideration of $200 million and the issuance of some 1.4 billion Lafarge Africa shares to the Lafarge Group.

  • N1.38b tax dispute: Ashaka Cement sues FIRS

    A manufacturing company, Ashaka Cement Plc, has sued the Federal Inland Revenue Service (FIRS) before the Tax Appeal Tribunal, North West Zone sitting in Kaduna over a N1.38 billion tax dispute.

    The suit was filed by company before the tribunal chaired by Justice Bashir Albasu.

    Other members of the panel are Eberechi Adele (SAN), Joshua Waklek,  Khadeeja Halilu and Dr Olumhense Imoisili.

    In its statement of claim, Ashaka Cement Company expressed disagreement with  the tax assessment made by the FIRS and prayed  the tribunal to review the decision.

    It said that in December 2014, the respondent (FIRS) commenced a Tax Audit Exercise on the appellant company for the  2013 financial year.

    “Subsequent to the exercise, the respondent issued an invitation/demand notice dated December 2, 2014 on the appellant assessing unpaid tax liabilities which the its representatives attended on December 15,2014.

    “The invitation/demand notice contained the breakdown of the assessment made by the respondent.

    “The appellant received the said letter on the December 4, 2014. The appellant responded to the said notice by an objection letter dated December 22,2014 and served it on the respondent on December 29,2014,”Ashaka Cement said.

    According to the company, the service of the objection letter was preceded by a reconciliation meeting held between the appellant’s representatives and the respondent’s representatives on December 15,2014.

    The appellant claimed that vital issues contained in the respondent’s notice were discussed and ironed out.

    Ashaka Cement argued that the grounds of objection raised by in its notice was a reflection of issues raised, canvassed and agreed upon at the reconciliation meeting.

    It noted that the company assessed its tax liability on technical fees based on estimate only and all supporting documents were attached in form of appendixes 1-12.

    “The relevant regulations require that technical fees computations prepared by an operating entity in Nigeria be reviewed and certified by a qualified chartered accountant. In this instance, the appellant has only made estimate of technical fees payable. This has not been certified or paid,” the company said.

    The company said despite the reconciliation meeting held between the parties, the respondent on the January 6,2015 finally issued a notice of refusal to amend the assessment.

    Ashaka Cement said it further wrote to FIRS on March 2, 2015 and April 16, 2015, asking the tax agency to reconsider its position by reviewing the assessment of the Tax Audit Exercise for the year 2013.

    The company said the request was declined which prompted it to instruct its counsel to file an appeal with the Tax Appeal Tribunal but could not do so within the statutory 30 days allowed by the Company Income Tax Act.

    Counsel to the appellant, Mr A. Dauda  informed the tribunal last week that steps had been taken to effect service of the required processes on IRS, the respondent organization.

    In a related development, hearing in the tax dispute between the Kaduna State Board of Internal Revenue and Ahmadu Bello University Zaria, with respect to unremitted personal income tax of over N6 billion has commenced before the Tribunal.

  • N1.38b tax dispute: Ashaka Cement sues FIRS

    A manufacturing company, Ashaka Cement Plc, has sued the Federal Inland Revenue Service (FIRS) before the Tax Appeal Tribunal, North West Zone sitting in Kaduna over a N1.38 billion tax dispute.

    The suit was filed by company before the tribunal chaired by Justice Bashir Albasu.

    Other members of the panel are Eberechi Adele (SAN), Joshua Waklek,  Khadeeja Halilu and Dr Olumhense Imoisili.

    In its statement of claim, Ashaka Cement Company expressed disagreement with  the tax assessment made by the FIRS and prayed  the tribunal to review the decision.

    It said that in December 2014, the respondent (FIRS) commenced a Tax Audit Exercise on the appellant company for the  2013 financial year.

    “Subsequent to the exercise, the respondent issued an invitation/demand notice dated December 2, 2014 on the appellant assessing unpaid tax liabilities which the its representatives attended on December 15,2014.

    “The invitation/demand notice contained the breakdown of the assessment made by the respondent.

    “The appellant received the said letter on the December 4, 2014. The appellant responded to the said notice by an objection letter dated December 22,2014 and served it on the respondent on December 29,2014,”Ashaka Cement said.

    According to the company, the service of the objection letter was preceded by a reconciliation meeting held between the appellant’s representatives and the respondent’s representatives on December 15,2014.

    The appellant claimed that vital issues contained in the respondent’s notice were discussed and ironed out.

    Ashaka Cement argued that the grounds of objection raised by in its notice was a reflection of issues raised, canvassed and agreed upon at the reconciliation meeting.

    It noted that the company assessed its tax liability on technical fees based on estimate only and all supporting documents were attached in form of appendixes 1-12.

    “The relevant regulations require that technical fees computations prepared by an operating entity in Nigeria be reviewed and certified by a qualified chartered accountant. In this instance, the appellant has only made estimate of technical fees payable. This has not been certified or paid,” the company said.

    The company said despite the reconciliation meeting held between the parties, the respondent on the January 6,2015 finally issued a notice of refusal to amend the assessment.

    Ashaka Cement said it further wrote to FIRS on March 2, 2015 and April 16, 2015, asking the tax agency to reconsider its position by reviewing the assessment of the Tax Audit Exercise for the year 2013.

    The company said the request was declined which prompted it to instruct its counsel to file an appeal with the Tax Appeal Tribunal but could not do so within the statutory 30 days allowed by the Company Income Tax Act.

    Counsel to the appellant, Mr A. Dauda  informed the tribunal last week that steps had been taken to effect service of the required processes on IRS, the respondent organization.

    In a related development, hearing in the tax dispute between the Kaduna State Board of Internal Revenue and Ahmadu Bello University Zaria, with respect to unremitted personal income tax of over N6 billion has commenced before the Tribunal.

  • ‘ Lafarge Plc lost N2.5b to insurgency’

    ‘ Lafarge Plc lost N2.5b to insurgency’

    CEMENT giant Lafarge Plc lost N2.5 billion to the insurgency in the Northeast between November 2014 and April 2015, according to its Managing Director/Chief Executive Officer (CEO) for Africa, Mr. Guillaume Roux.

    Roux, who visited the office of the Presidential  Initiative for the Northeast, added that the company was investing N100 billion in expansion of its business in the region.

    The cement chief said the company had decided to partner with the Federal Government in rebuilding the ravaged region.

    He said: “We have had some difficulties in the last few months and we estimate we have lost about N2.5 billion during that period.

    “We are committed to development of the region. We have a programme of N100 billion to invest. This is why this partnership is very key.”

    Roux said that Ashaka Cement, owned by Lafarge, had been in the Northeast for over 40 years.

    The company, he said, will be partnering the government in six key areas of entrepreneurship, health, skills acquisition, coal to power solution, education and technology.

    The Chairman of PINE, Prof. Soji Adelaja, described the partnership as a welcome development, saying that the company has shown the way forward in community service relation.

    He said: “We all know Lafarge is the largest employer of labour in the region. It is important that Lafarge plays leadership role in rebuilding the region and set example for other companies in CSR.”

  • Boko Haram steals dynamites from Ashaka Cement factory

    Boko Haram steals dynamites from Ashaka Cement factory

    Boko Haram fighters are set for more lethal attacks after carting away on Tuesday eight truck loads of dynamites from a cement factory near Gombe, the Gombe State capital.

    The sect’s fighters also robbed a bank on Tuesday after attacking Nafada where they blew up a police station and the local secretariat of the Peoples Democratic Party (PDP). Nafada is 150 kilometres from Gombe. Many people were killed by the attackers who rode into the town on more than 50 motorcycles.

    Also shot dead was a cleric, Sheik Adamu Misira, whose home was invaded.

    The invaded Ashaka Cement, a Lafarge-owned firm, set up in 1974, is the largest cement factory in Northern Nigeria, which has about 500 direct employees – some of them expatriates.

    The gunmen stormed the site at about 3pm, according to a worker, Amadu Wunti, who said they looted high explosives and demanded to be taken to where expatriate managers stay.

    Wunti identified the expatriates as French nationals but the Lafarge group said it did not comment on its foreign staff for security reasons.

    At the time, the plant was mostly empty, with staff having run to safety when news spread that the gunmen were coming after the raid in Nafada, which left at least 10 dead, according to residents.

    Abubakar Galda and Awwal Ibrahim said five soldiers were killed at a checkpoint and four worshippers were shot dead at a mosque with the town’s most senior cleric.

    Wunti’s account was supported by several others, including another staff member, who said: “They [the militants] pulled out after the raid. They did not hurt or kidnap anyone.

    “But they took eight company vehicles and lots of dynamite used in quarry work. The attackers, which included young women, broke into the store and loaded dynamite into the vehicles and drove off.”

    Nafada is near the boundary with Yobe, a state under a state of emergency since May last year because of insurgency.

    The violence would be consistent with Boko Haram’s recent pattern of striking south of their stronghold in the northeast, where it is attempting to carve out a hardline Islamic state.

    The attack happened after a triple bombing at a bus station in Gombe city, last week, which killed no fewer than eight people and injured dozens of others.

    Suspected militants on Sunday used dynamite to blast open a jail in Kogi State, where Boko Haram prisoners are believed to be held, allowing 132 to escape.

    Boko Haram funds its operations in part through bank robberies and has previously stolen vehicles, including armoured personnel carriers, weapons and ammunition from the military.

    Unlike previous attacks in recent months in the far northeast, the militants did not attempt to hold the town, leaving when they secured their loot.

    French diplomats in Nigeria said none of its nationals was taken in the raid. The head of the Lafarge group, Bruno Lafont, said operations had not been affected.

    “The factory was the target of intruders. There were no injuries. There was no damage in the factory,” he told reporters in Paris yesterday.

    “This morning (Wednesday), the situation is still calm and everything is back to normal.”

    Members of the #BringBackOurGirls advocacy accused the government of withholding facts about the dangers of the insurgents’ attack on the cement factory from Nigerians, knowing full well that the dynamites will be used by the insurgents to create more explosives.

    #BBOG added that the insurgents who invaded the factory also made away with food stuff.

    A member of the group, Dr Eman Shehu, said yesterday that at first, when people heard about the invasion of Ashaka, it was believed that the insurgents needed the airspace located there for their own benefit.

    “When Boko Haram attacked the Ashaka Cement factory in Gombe, what the government and military failed to tell Nigerians is that Boko Haram carted away with dynamites and food stuff.

    “This is really a dangerous situation because those dynamites can be used by the insurgents to create more explosives that will create more havoc.”

    But the military said the insurgents had been repelled from the factory.

    According to a highly-placed source, who spoke on the preliminary findings of the military, the insurgents were after explosives.

    The source said: “From our preliminary investigation, the insurgents invaded the cement factory because of explosives. They needed more explosives for their operation. Perhaps for more dastardly attacks.

    “But they did not succeed at all because they could not get the explosives. And troops were quickly mobilised to repel them.

    “We have regained the control of the area. And security has been beefed up in all parts of Gombe State.”

    Another military source added: “We are also reviewing security network for all the states in the Northeast because of the new pattern of attacks by the sect members.”

  • Ashaka cement to increase capacity to 3m tons

    Asubsidiary of Lafarge Group, AshakaCem Plc, has launched a development programme that will increase its capacity from the 900,000 tons to three million tons, its Board has said after a meeting in Abuja.

    It also announced that technical feasibility studies on raw material reserves, power and infrastructure undertaken by the firm were in progress, particularly on additional limestone and coal reserves that were at an advanced stage.

    The Board also mentioned the importance of conducting financing and operational reviews of the project so that the company would benefit from Lafarge Technical, operational and financial resources in the country, to ensure the success of this development.

    Lafarge, as majority shareholder of Ashaka, gives great importance to Nigeria in its emerging markets portfolio and is committed to strengthening its existing businesses and develop new activities in this country, the company said.