The Nation Newspaper

Tag: Lafarge Africa

  • Mixed earnings: NSE indicators maintain negative outlook

    Activities on the Nigerian Stock Exchange (NSE), for the second consecutive day, maintained bearish trend, dropping further by 1.02 per cent due largely to mixed 2018 earnings reports.

    The market capitalisation on Tuesday, nosedive by N120 billion or 1.02 per cent to close at N11.677 trillion against N11.797 trillion on Monday.

    The All-Share Index maintained the same direction, dropping by 323.30 points or 1.02 per cent to close at 31,313.36 compared with 31,636.66 posted on Monday.

    The drop in market indices was contrary to expectations of some market analysts who were of the opinions that the market would rebound following relatively peaceful conduct of the general elections.

    Commenting, Mr. Ambrose Omordion, the Chief Operating Officer, Invest Data Ltd., told NAN that the lull was due to low liquidity in the system.

    Omordion said that the low liquidity was as a result of early exit of smart money in the market.

    He said that some smart investors whose expectations were dashed exited the market shortly after the presidential election.

    Omordion said that mixed numbers emanating from quoted companies for 2018 financial year contributed to the development.

    Meanwhile, Mobil recorded the highest loss during the day, declining by N5.10 to close at N165 per share.

    International Breweries trailed with a loss of N2.65 to close at N24.05, while Guaranty Trust Bank dropped by N1.80 to N35.50 per share.

    NASCON dipped N1 to close at N20.70, while Dangote Cement also depreciated by N1 to close at N194 per share.

    Lafarge Africa dominated the gainers’ table, gaining 50k to close at N13 per share.

    United Capital followed with a gain of 13k to close at N3.28, while UAC Property added 13k to close at N1.95 per share.

    Africa Prudential increased by 12k to close at N4.92, while Union Bank of Nigeria gained 10k to close at N7 per share.

    FBN Holdings was the most active in volume terms, exchanging 60.14 million shares worth N493.12 million.

    Zenith Bank followed with an account of 46.46 million shares valued at N1.05 billion, while Zenith Bankexchanged 14.47 million shares worth N35.32 million.

    Access Bank traded 11.45 million shares valued at N68.46 million, while United Bank for Africa sold 8.53 million shares worth N64.66 million.

    In all, a total of 219.37 million shares valued at N2.93 billion was traded by investors in 3,345 deals, representing an increase of 70.89 per cent.

    This was against 128.37 million shares worth N2.39 billion exchanged in 2,752 deals on Monday.

    NAN

  • N89.2b rights issue: Lafarge Africa seeks approval for allotment

    Lafarge Africa Plc is seeking Securities and Exchange Commission’s (SEC’s) approval for the adoption of allotment results for its recent N89.2 billion rights issue.

    Its board of directors last weekend approved the proposed allotment for the rights issue, authorising the joint issuing houses to file the proposed allotment for clearance by SEC.

    Acceptance list for the N89.2 billion rights issue closed on January 28, 2018. It  had opened on December 17, 2018. Lafarge Africa had offered 7.43 billion ordinary shares of 50 kobo each at N12 per share. The rights were pre-allotted on the basis of six new ordinary shares for every seven ordinary shares held as at the close of business on December 4, 2018.

    The N89.2 billion rights issue was Lafarge Africa’s second issue in 14 months. Lafarge Africa had sold its November 2017’s rights issue of about 3.1 billion ordinary shares of 50 kobo each at N42.50 per share. The N89.2 billion rights issue was also structured like the November 2017 rights issue, including a convertible deal that allowed the majority core investor- LafargeHolcim, to convert its debts to equities.

    There are fears that with the debt-to-equities conversion and investors’ apathy at the primary market, the percentage shareholding of the majority core investor-LafargeHolcim, may increase after the latest rights issue.

    The November 2017’s rights issue had increased LafargeHolcim’s majority shareholding to 76.32 per cent. Lafarge Africa needs to maintain a minimum of 20 per cent of its shareholdings in the hands of minority shareholders to sustain its listing on the Nigerian Stock Exchange (NSE). With 76.32 per cent majority equity stake, LafargeHolcim already has the much-needed three-quarters percentage shareholdings necessary for major corporate changes.

    LafargeHolcim had taken advantage of the November 2017’s rights issue to increase its majority equity by 4.97 percentage points from pre-rights issue position of 71.35 per cent to 76.32 per cent after the rights issue.

    LafargeHolcim had picked up its rights fully and further subscribed to the un-allotted shares, thus raising its percentage shareholding. It subscribed fully to its rights under a debt-for-equities deal that saw conversion of LafargeHolcim’s dollar-based loan to equities.

    Lafarge Africa Plc Chairman, Mr Mobolaji Balogun, has said the additional capital raised from the latest rights would further help to deleverage the company’s balance sheet and provide head room for the expansion of its business.

    He said the company foresees a stable pricing environment and favourable economic conditions in its Nigeria market while its South Africa operations are undergoing a turnaround plan.

    Chief Executive Officer, Lafarge Africa Plc, Mr. Michel Puchercos said the company’s refinancing plan is aimed at preparing for future development in Nigeria by improving the company’s leverage as well as strengthening its profitability.

    Key extracts of the interim report and accounts of Lafarge Africa for the nine-month period ended September 30, 2018 had shown that sales rose from N223.67 billion in third quarter 2017 to N234.30 billion in third quarter 2018. With cost of sales rising from N165.76 billion to N178.21 billion, the cement company however, ended with a pre-tax loss of N14.36 billion in 2018 as against pre-tax profit of N1.09 billion in comparable period of 2017.

    After tax gain of N4.04 billion, net loss after tax stood at N10.37 billion in third quarter 2018 compared with net profit after tax of N937.91 million in comparable period of 2017. With these, loss per share for the nine-month period stood at N1.20 in 2018 as against positive earnings per share of 10 kobo in corresponding period of 2017.

     

  • Lafarge rewards distributors, pledges support for business growth

    Lafarge Africa, a leading cement manufacturer and building solutions provider, has rewarded its performing trade partners for excellent performance in the year 2018.

    The Customer Appreciation Awards which held in three cities including Gombe, Ibadan, and

    Enugu, celebrated customers who distribute Lafarge Africa’s range of products from Ewekoro and Sagamu in the South West, Mfamosing in the South-South and Ashaka in the North East.

    In a statement in Abuja on Monday, the Head, Corporate Communications, Lafarge Africa, Omotola Oyebanjo, stated that outstanding customers went home with 11 tonne trucks, five tonne trucks commercial tricycles and an all-expense paid trip to Saudi Arabia, among others.

    According to the statement, the 2018 awards was a major landmark for the company as it coincided with its 60th year of sustainable business practice in Nigeria.

    “The company which pioneered commercial cement production in Nigeria, started operations in 1959 (then as West African Portland Cement Company, WAPCO) and has played a significant role in building homes, offices, roads, bridges, monuments and cities across Nigeria.

    “At the Awards ceremonies, the company reiterated its commitment to support the business growth of its trade partners,” the statement said.

    Commercial Director, Lafarge Africa, Gbenga Onimowo, who spoke during the South East awards, commended distributors for their contribution to the growth and success of the company’s business in the previous year.

    “As partners in progress, we will work closely with all our partners to ensure their business grows in a very sustainable manner. We will also support our customers with tools and training initiatives to develop their human capacity as well as their business processes,” he stated.

    Also, the Country Chief Executive Officer of the company, Michel Puchercos, who was in Gombe for the awards, expressed appreciation to all the distributors for their remarkable performance in keeping the Lafarge range of products as one of the top brands in the market.

    “For your commitment to results through the years and in 2018 in particular, Lafarge

    Africa says a big thank you and we look forward to a more fruitful year in 2019. Your efforts have helped the company maintain its market position and the brand continues to enjoy the trust and respect which it has built with Nigerians over the years.

    “This year, we are set to change the way we do business by empowering our customers to become partners. To achieve this Lafarge Africa has embarked on a business transformation project which is aimed at improving operating efficiencies and interactions with our customers for a mutually beneficial relationship. Our new strategy has started to deliver results and we are on a new path of profitable growth,” he said.

  • Lafarge Africa floats N89.2b rights issue amid decline

    Lafarge Africa Plc has opened acceptance list for a rights issue to raise N89.2 billion from existing shareholders as part of continuing efforts by the cement group to restructure its debt-laden balance sheet.

    Lafarge Africa is offering 7.43 billion ordinary shares of 50 kobo each at N12 per share. The rights have been pre-allotted on the basis of six new ordinary shares for every seven ordinary shares held as at the close of business on Tuesday, December 4, 2018.

    Acceptance list for the N89.2 billion rights issue opened on Monday, December 17, 2018 and will close on Wednesday, January 26, 2019.

    Lafarge Africa’s share price dropped by 10 kobo or 0.84 per cent to N11.85 per share at the Nigerian Stock Exchange (NSE) yesterday, 15 kobo below the rights issue price. The lower market price raises concerns about the attractiveness of the rights issue and the ability of renouncing shareholders to trade their rights on the secondary market.

    The latest capital raising is Lafarge Africa’s second issue in 14 months. Lafarge Africa had sold its November 2017’s rights issue of about 3.1 billion ordinary shares of 50 kobo each at N42.50 per share.

    The new rights issue is also be structured like the November 2017 rights issue, including a convertible deal that allows the majority core investor- LafargeHolcim, to convert its debts to equities.

    At the extraordinary general meeting that approved the new capital raising, shareholders had authorised the company to enter into a related party transaction to accept loan facility from LafargeHolcim, the foreign majority core investor which holds 76.32 per cent equity stake.

    Also, the meeting granted the board the authority to apply any convertible loan, shareholder loan or any other loan facility due to any person, from the company, as may be agreed by the person and the company, towards payment for any shares or rights subscribed for in the rights issue.

    Shareholders also approved resolutions authorising the company to create additional 10 billion ordinary shares of 50 kobo each to increase its authorised share capital to 20 billion ordinary shares.

    Shareholders authorised the board of the company to raise capital of N90 billion by way of a rights issue of ordinary shares to its shareholders  and that the rights issue be executed at such price, time, for such period and on such other terms and conditions as the directors may deem fit.

    Chairman, Lafarge Africa Plc, Mr Mobolaji Balogun, said the additional capital to be raised will further help to deleverage the company’s balance sheet and provide head room for the expansion of its business.

    He said the company foresees a stable pricing environment and favourable economic conditions in its Nigeria market while its South Africa operations are undergoing a turnaround plan.

    Chief Executive Officer, Lafarge Africa Plc, Mr. Michel Puchercos said the company’s refinancing plan is aimed at preparing for future development in Nigeria by improving the company’s leverage as well as strengthening its profitability.

    Key extracts of the interim report and accounts of Lafarge Africa for the nine-month period ended September 30, 2018 showed that sales rose from N223.67 billion in third quarter 2017 to N234.30 billion in third quarter 2018. With cost of sales rising from N165.76 billion to N178.21 billion, the cement company however ended with a pre-tax loss of N14.36 billion in 2018 as against pre-tax profit of N1.09 billion in comparable period of 2017. After tax gain of N4.04 billion, net loss after tax stood at N10.37 billion in third quarter 2018 compared with net profit after tax of N937.91 million in comparable period of 2017. With these, loss per share for the nine-month period stood at N1.20 in 2018 as against positive earnings per share of 10 kobo in corresponding period of 2017.

  • Lafarge Africa to sell N89.21b rights issue at N12 per share

    The board of Lafarge Africa Plc yesterday announced that the company will be raising N89.21 billion in new equity funds through a rights issue at N12 per share.

    Lafarge Africa’s share price dropped by 4.48 per cent or 60 kobo to N12.80 per share yesterday at the Nigerian Stock Exchange (NSE).

    The rights price represents a discount of 10.45 per cent on the company’s traded closing price as at Monday, December 3, 2018.

    The rights issue will be pre-allotted on the basis of six new ordinary shares of 50 kobo each for every seven ordinary shares of 50 kobo held as at the qualification date. The decisions were reached at the emergency board meeting held on Monday.

    According to the company, the regulatory approval process is ongoing.

    The latest capital raising is Lafarge Africa’s second issue in 14 months. Lafarge Africa had sold its November 2017’s rights issue of about 3.1 billion ordinary shares of 50 kobo each at N42.50 per share.

    The new rights issue will also be structured like the November 2017 rights issue, including a convertible deal that allows the majority core investor- LafargeHolcim, to convert its debts to equities.

    At a recent extraordinary general meeting in Lagos, shareholders had approved resolutions authorising the company to create additional 10 billion ordinary shares of 50 kobo each to increase its authorised share capital to 20 billion ordinary shares.

    Shareholders also authorised the board of the company to raise capital of N90 billion by way of a rights issue of ordinary shares to its shareholders  and that the rights issue be executed at such price, time, for such period and on such other terms and conditions as the directors may deem fit.

    Also, the meeting granted the board the authority to apply any convertible loan, shareholder loan or any other loan facility due to any person, from the company, as may be agreed by the person and the company, towards payment for any shares or rights subscribed for in the rights issue.

    Shareholders also authorised the company to enter into a related party transaction to accept loan facility from LafargeHolcim, the foreign majority core investor which holds 76.32 per cent equity stake.

    Chairman, Lafarge Africa Plc, Mr Mobolaji Balogun, said the additional capital to be raised will further help to deleverage the company’s balance sheet and provide head room for the expansion of its business.

    He said the company foresees a stable pricing environment and favourable economic conditions in its Nigeria market while its South Africa operations are undergoing a turnaround plan.

    Chief Executive Officer, Lafarge Africa Plc, Mr. Michel Puchercos said the company’s refinancing plan is aimed at preparing for future development in Nigeria by improving the company’s leverage as well as strengthening its profitability.

     

     

  • Lafarge Africa calls emergency meeting on rights issue

    The board of Lafarge Africa Plc yesterday cancelled a previously scheduled interactive session at the Nigerian Stock Exchange (NSE) and entered an emergency meeting amid worry that the slump in the company’s share price could undermine its forthcoming rights issue.

    Company Secretary, Lafarge Africa Plc, Adewunmi Alode, who confirmed the emergency board meeting in a regulatory filing, stated that the meeting was called to “consider the rights issue price”.

    In order to forestall insider dealings, the company cautioned that no director, employee, persons discharging managerial responsibility and advisers of the company and their connected persons may directly or indirectly deal in the shares of the company until information regarding the rights issue price is released on the NSE.

    At a low of N13.40 per share and year-to-date decline of 70 per cent, Lafarge Africa is the worst-performing stock at the NSE so far this year.

    Lafarge Africa plans to float a N90 billion rights issue this month, its second rights issue in 14 months. Shareholders had approved the plan by the company to raise about N90 billion in new equity funds as it seeks to deleverage its balance sheet and restructure short-term loans.

    At a recent extraordinary general meeting in Lagos, shareholders approved resolutions authorising the company to create additional 10 billion ordinary shares of 50 kobo each to increase its authorised share capital to 20 billion ordinary shares.

    Shareholders also authorised the board of the company to raise capital of N90 billion by way of a rights issue of ordinary shares to its shareholders  and that the rights issue be executed at such price, time, for such period and on such other terms and conditions as the directors may deem fit.

    Also, the meeting granted the board the authority to apply any convertible loan, shareholder loan or any other loan facility due to any person, from the company, as may be agreed by the person and the company, towards payment for any shares or rights subscribed for in the rights issue.

    Shareholders also authorised the company to enter into a related party transaction to accept loan facility from LafargeHolcim, the foreign majority core investor which holds 76.32 per cent equity stake.

    Chairman, Lafarge Africa Plc, Mr Mobolaji Balogun, said the additional capital to be raised will further help to deleverage the company’s balance sheet and provide head room for the expansion of its business.

    He said the company foresees a stable pricing environment and favourable economic conditions in its Nigeria market while its South Africa operations are undergoing a turnaround plan.

    Chief Executive Officer, Lafarge Africa Plc, Mr. Michel Puchercos said the company’s refinancing plan is aimed at preparing for future development in Nigeria by improving the company’s leverage as well as strengthening its profitability.

    Lafarge Africa had sold its November 2017’s rights issue of about 3.1 billion ordinary shares of 50 kobo each at N42.50 per share.

    Key extracts of the interim report and accounts of Lafarge Africa for the nine-month period ended September 30, 2018 showed that sales rose from N223.67 billion in third quarter 2017 to N234.30 billion in third quarter 2018. With cost of sales rising from N165.76 billion to N178.21 billion, the cement company however ended with a pre-tax loss of N14.36 billion in 2018 as against pre-tax profit of N1.09 billion in comparable period of 2017. After tax gain of N4.04 billion, net loss after tax stood at N10.37 billion in third quarter 2018 compared with net profit after tax of N937.91 million in comparable period of 2017. With these, loss per share for the nine-month period stood at N1.20 in 2018 as against positive earnings per share of 10 kobo in corresponding period of 2017.

  • Shareholders approve N90b rights issue for Lafarge Africa

    Shareholders of Lafarge Africa Plc have approved plan by the company to raise about N90 billion in new equity funds as the cement company seeks to deleverage its balance sheet and restructure short-term loans.

    At an extraordinary general meeting in Lagos, shareholders approved resolutions authorising the company to create additional 10 billion ordinary shares of 50 kobo each to increase its authorised share capital to 20 billion ordinary shares.

    Shareholders also authorised the board of the company to raise capital of N90 billion by way of a rights issue of ordinary shares to its shareholders  and that the rights issue be executed at such price, time, for such period and on such other terms and conditions as the directors may deem fit.

    Also, the meeting granted the board the authority to apply any convertible loan, shareholder loan or any other loan facility due to any person, from the company, as may be agreed by the person and the company, towards payment for any shares or rights subscribed for in the rights issue.

    Shareholders also authorised the company to enter into a related party transaction to accept loan facility from LafargeHolcim, the foreign majority core investor which holds 76.32 per cent equity stake.

    Chairman, Lafarge Africa Plc, Mr Mobolaji Balogun, said the additional capital to be raised will further help to deleverage the company’s balance sheet and provide head room for the expansion of its business.

    He said the company foresees a stable pricing environment and favourable economic conditions in its Nigeria market while its South Africa operations are undergoing a turnaround plan.

    Chief Executive Officer, Lafarge Africa Plc, Mr. Michel Puchercos said the company’s refinancing plan is aimed at preparing for future development in Nigeria by improving the company’s leverage as well as strengthening its profitability.

  • Lafarge Africa to create 10b new shares

    Lafarge Africa Plc plans to create additional 10 billion ordinary shares of 50 kobo each to increase its authorised share capital to 20 billion ordinary shares. The cement company will thereafter float a rights issue to raise N90 billion.

    In a regulatory filing yesterday, Lafarge Africa stated that shareholders of the cement company have been invited to an extraordinary general meeting next month to consider resolutions on the creation of additional shares and the rights issue among other proposals.

    Lafarge Africa currently has authorised share capital of N5 billion consisting of 10 billion ordinary shares.

    Shareholders are expected to authorise the board of the company to “raise capital of N90 billion by way of a rights issue of ordinary shares to its shareholders  and that the rights issue be executed at such price, time, for such period and on such other terms and conditions as the directors may deem fit”.

    Also, the meeting is expected to consider granting the board the authority to “apply any convertible loan, shareholder loan or any other loan facility due to any person, from the company, as may be agreed by the person and the company, towards payment for any shares or rights subscribed for in the rights issue”.

    Shareholders are also expected to consider a resolution authorising the company to enter into a related party transaction to accept loan facility from LafargeHolcim, the foreign majority core investor which holds 76.32 per cent equity stake.

  • Lafarge Africa grows H1 turnover to N162b

    •Plans N90b rights issue

    Lafarge Africa Plc grew its top-line by 11 per cent to N162 billion in the first half of this year as a strong performance in the group’s Nigerian operation mitigated drawback from South African operations.

    Key extracts from the interim report and accounts for the six-month period ended June 30, 2018 showed that group turnover rose from N154.81 billion in first half 2017 to N162.29 billion in first half 2018. Gross profit and operating profit stood at N38.96 billion and N16.34 billion in 2018.

    The board of Lafarge Africa has also approved the extension of existing shareholder loan and a right issue of up to N90 billion, as part of efforts to reduce the company’s leverage position as well as strengthen its profitability.

    The company’s Chief Executive Officer, Mr. Michel Puchercos, said the group continued to deliver strong margins in its Nigerian business as a result of its commercial and energy strategies.

    He noted that the group performance was adversely impacted by timing of inventory movements and performance of its South African business.

    According to him, Lafarge Africa’s commercial, logistic and industrial operations in second quarter of 2018 continued to improve strongly despite inflation and foreign exchange impacts.

    “We continued to deliver on our energy improvement plan, with notable increased use of alternative fuel and coal. Our logistics and commercial initiatives such as improved product visibility and fast tracking of the new route to market also contributed to the strong performance in the second quarter,” Puchercos said.

    He added that the group is focused on executing its turnaround plan and improvement of margins in its South African operations.

    “Full year outlook for the cement market in Nigeria remains favourable with positive signs of recovery since March. Lafarge Africa Plc’s business turnaround actions will continue to deliver in 2018 through energy optimization as well as commercial and logistic improvement,” Puchercos said.

    He noted that as the South African economy is expected to grow in 2018, the turnaround plan of the South African operations is focused on cost containment, commercial transformation and industrial stabilisation. Further analysis of the results showed that the group recorded net loss of N3.90 billion in first half 2018 as against net profit of N19.73 billion in first half 2017, largely due to the decline in the South African business.

    “The overall goal is to create shareholder value by returning the South African business to profitability through improved margins,” Puchercos said.

     

  • Shareholders approve N100b new capital raising for Lafarge Africa

    Shareholders of Lafarge Africa Plc have approved a resolution authorising the company to raise additional capital of up to N100 billion as the cement group continues to optimise its balance sheet.

    At the annual general meeting in Lagos, shareholders mandated the board of directors of Lafarge Cement to raise additional capital through an offer of debt or equity or a combination of the two means from the Nigerian or international capital market.

    Lafarge Africa recently successfully raised N131.6 billion through a rights issue, which was oversubscribed.

    Shareholders also approved the payment of N13 billion as cash dividend for the 2017 business year, representing a dividend per share of N1.50.The approved dividend represents a 45 kobo increase per share on the payout for the 2016 business year.

    Chairman, Lafarge Africa Plc, Mr. Mobolaji Balogun said the dividend payout was in appreciation of the support shown by the shareholders for the growth of the company.

    According to him, the board is mindful of the support of all shareholders through the difficult but necessary journey to transform the company into a more agile and correctly financed business ready to benefit from the potential opportunities in Nigerian building materials market.

    He assured shareholders that restructuring of the capital structure of the company largely completed through the past year would help to significantly reduce the cost of financing and currency translation risk.

    He said the recent N131.6 billion rights issue has helped to significantly reduce the foreign exchange debt exposure by 50 per cent, noting that the board is already reviewing options to deal with the remaining foreign exchange debt.

    Balogun pointed out that Lafarge Africa has been implementing a new route-to-market initiative aimed at supporting the anticipated growth in demand as the country gradually recovers from recession and as foreign exchange rates stabilise.

    Country Chief Executive Officer, Lafarge Africa Plc, Michel Puchercos expressed optimism about the performance of the company in the current business year.