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Tag: Lafarge

  • 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.

  • Lafarge Africa Plc partners Canaancity on safety

    A building solutions provider, Lafarge Africa Plc, has partnered an association of indigenous and foreign companies, Canaancity Consortium, on a safety awareness programme training for 200 employees of the consortium.

    The partnership is aimed at improving the safety standards and practices at Canaancity sites, which is building over 700 housing units in the first phase of estates it is developing. More estates are still being planned. Directors and heads of projects of the consortium attended a one-day health and safety training at the Covenant University Guest House, Otta, Ogun State, last week.

    Speaking on the training initiative, Director for Health and Safety at Lafarge Africa Plc, Graeme Bride, said: “We are always pleased to share our experience on safety in the Nigerian construction industry. Our aspiration to do business with zero harm is not limited to our factories and employees. We are also particular about safety on the sites of clients and contractors.”

    Canaancity Consortium Chief Executive O fficer (CEO) Pastor Tokunbo  Olofin said: “We are happy to partner Lafarge on this initiative. It will improve our project site safety standards and reduce lost time incidents. We see this engagement as an avenue to build a stronger relationship with Lafarge.”

    During the training programme, engineers, technicians and other operational employees were trained on the risks related to their construction work while health workers were trained on how to prepare for and respond to emergencies. There were also sessions on the best onsite safety practices such as deployment of safety signages as well as procedures for reporting and responding to incidents.

  • 42 geologists benefit from Lafarge Africa expertise

    42 geologists benefit from Lafarge Africa expertise

    Lafarge Africa, cement and building solutions provider, has concluded the training of 42 geologists at its Ewekoro plant and quarry in Ogun State. The training, which ended last week, afforded stakeholders and participants the opportunity to benefit from its wealth of experience and expertise.

    According to its Communications, Public Affairs & Sustainable Development Director, Mrs. Folashade Ambrose-Medebem, the firm is committed to the promotion of local content and the development of local capacity. She said Lafarge’s commitment to capacity development aligned with the people, communities and climate, which are the pillars of its 2030 Sustainability Plan and the UN Sustainable Development Goals.

    “Training geologists is one of several ways stakeholders within Lafarge’s areas of operations benefit from its presence and also the result of its long-standing relationship and partnership with Ogun State Government,” she explained.

    The training was facilitated by members of Lafarge Africa’s technical staff. During the training, the geologists gained theoretical and practical insights from Lafarge Africa’s Training Centre in and quarry in Ewekoro. Bimbo Ashiru, the Ogun State Commissioner for Commerce, awarded certificates of attendance to participants.

    Other major CSR projects the cement maker has embarked on, to build capacity in host communities, include the Cement Professional Technicians Programme (CPTP)—a three-year development programme for young science-oriented school leavers selected from its host communities across the federation—and the Technical Apprenticeship Programme. Such initiatives, Ambrose-Medebem said, are meant to mitigate the dearth of skilled technicians and professionals in the country’s construction sector.

  • Lafarge Africa to raise N131.65b from shareholders

    Lafarge Africa to raise N131.65b from shareholders

    •To merge with two subsidiaries

    The board of directors of Lafarge Africa Plc yesterday announced that the cement company would be raising N131.65 billion through a rights issue.

    After the end of its extraordinary meeting, directors of Lafarge Africa stated that they have decided that the company will float a rights issue of five new ordinary shares for every nine ordinary shares at a price of N42.50 per share.

    The qualification date for the rights issue has not been decided. However, the company has commenced regulatory approval process for the new issue.

    Also, Lafarge Africa would be undertaking a business combination with two of its wholly owned subsidiaries-United Cement Company and Atlas Cement Company Limited.

    The board of directors of Lafarge Africa has already approved the merger and business combination between Lafarge Africa and the two other companies. The board of directors authorised Lafarge Africa to enter into negotiations necessary for the consummation of the merger.

    The directors had also passed a resolution authorising Lafarge Africa to seek the approval of the Securities and Exchange Commission (SEC) and other relevant regulators for the consummation of the merger.

    LafargeHolcim, which holds the majority equity stake of 72.59 per cent in Lafarge Africa Plc, has indicated it will subscribe fully to its rights. LafargeHolcim will pick up its rights under a debt-for-equities deal that will see conversion of LafargeHolcim’s dollar-based loan to equities.

    Many Nigerian shareholders had raised objections to the debt-for-equities deal, which they said could give the majority core investor undue advantage to increase its controlling equity stake in the company.

    Chairman, Lafarge Africa Plc, Mr. Mobolaji Balogun, said the recapitalisation would help to reduce the group’s exposure to adverse foreign currency translation losses as experienced in 2016 following a 40 per cent depreciation of the Naira against the Dollar.

    He noted that the decision of LafargeHolcim to convert existing loans into equity demonstrates the core investor’s continued belief in the Nigeria story, pointing out that the rights issue is the largest so far in the Nigerian capital market and the largest investment in a listed company by an investor.

    According to him, the rights issue will help to reduce the group’s foreign currency exposure by 50 per cent while the remaining portion of the debt, with the support from LafargeHolcim, has been refinanced and hedged for 12 months.

  • Lafarge Africa’s board meets on N140b rights issue

    Lafarge Africa’s board meets on N140b rights issue

    The board of directors of Lafarge Africa Plc will tomorrow hold an extraordinary meeting to consider the terms of the cement group’s new capital raising. Shareholders of Lafarge Africa had recently authorised the board of directors of the cement company to raise new equity capital up to N140 billion in a major move to deleverage the cement group.

    Company Secretary, Lafarge Africa Plc, Mrs Edith Onwuchekwa, in a statement at the weekend stated that the directors would be considering the terms of the rights issue at the Tuesday meeting.

    Lafarge Africa plans to raise the new equity fund through a rights issue, implying that only existing and qualified shareholders will participate in the new issue. The shares will be pre-allotted to shareholders on the basis of their shareholdings as at a predetermined date.

    Lafarge Africa had planned to launch its rights issue later this month and finalise the offer by the fourth quarter.

    LafargeHolcim, which holds the majority equity stake of 72.59 per cent in Lafarge Africa Plc, has indicated it will subscribe fully to its rights. LafargeHolcim will pick up its rights under a debt-for-equities deal that will see conversion of LafargeHolcim’s dollar-based loan to equities.

    Many Nigerian shareholders had raised objections to the debt-for-equities deal, which they said could give the majority core investor undue advantage to increase its controlling equity stake in the company.

    Chairman, Lafarge Africa Plc, Mr. Mobolaji Balogun, said the recapitalisation would help to reduce the group’s exposure to adverse foreign currency translation losses as experienced in 2016 following a 40 per cent depreciation of the Naira against the Dollar.

    He noted that the decision of LafargeHolcim to convert existing loans into equity demonstrates the core investor’s continued belief in the Nigeria story, pointing out that the rights issue is the largest so far in the Nigerian capital market and the largest investment in a listed company by an investor.

    According to him, the rights issue will help to reduce the group’s foreign currency exposure by 50 per cent while the remaining portion of the debt, with the support from LafargeHolcim, has been refinanced and hedged for 12 months.

    Balogun said the company has been positioned for better performance in the years ahead as benefits of the turnaround plan launched in the third quarter of 2016 were already counting in the fourth quarter of 2016.

    “We have increased local sourcing of critical materials to lower foreign exchange component of our operational costs. Finally, we are working on a new route to market initiative and improvements in logistics with increased vehicle turn-around and size of fleet of third party providers,” Balogun said.

    Group Managing Director, Lafarge Africa Plc, Mr. Michel Puchercos, said the acquisition of Unicem in 2016 was in line with the group’s capacity expansion plans.

    He noted that doubling of the production capacity of the Mfamosing plant in Calabar to 5.0 million metric tons per annum has contributed significantly to Lafarge Africa’s capacity and footprint in Nigeria as it provides an opportunity to increase the group’s share of the cement market in the South East and South regions.

  • Lafarge Africa to bridge skills gap, embrace clean energy

    Lafarge Africa to bridge skills gap, embrace clean energy

    Cement manufacturing and building solutions firm, Lafarge Africa Plc, has said that its investment in the Cement Professionals Training Programme (CPTP) is aimed at training youths toward bridging skills gap in the cement  industry and increasing local content of her operations in the country. It is also aimed at forging strong ties with its host communities as well as a Corporate Social Responsibility (CSR) programme.

    Lafarge’s Communication and States Relations Manager, Mrs Titilope Oguntuga, disclosed this at the weekend while receiving reporters at the firm’s 3. 5 million metric tonnes capacity Ewekoro plant in Ogun State.

    She explained that about 27 students drawn from the company’s area of operations are on a three- year training with the cement manufacturer. On completion, some of the successful trainees will be absolved into the company’s workforce, while the others will form a pool of skilled personnel needed in critical areas in the industry.

    One area the company says it is emphasising on in its production process is to ensure a viable socioeconomic and environmental development of the country. This, the Environment Manager, Ewekoro Plant, Mrs Olufunke Madojutimi, said, accounts for its commitment to using renewable energy to enhance sustainable development of the construction industry and protection of the environment.

    Explaining the company’s operations, the Plant Manager, Ewekoro Plants I and II, Mr Olusegun Soyoye, said the firm’s strategic plan was to conduct business with zero harm to people and the environment through developing solutions that optimised natural resources for power generation.

    This, he said, made the company to look into substituting its usage of fossil fuel with the use of renewable energy to generate electricity; it also helps its production process to mitigate disruptions arising from unstable power supply and gas shortage to the industrial sector.

    “We are using palm kernel shells to produce biomass that fuels our plant and 134 hectares of trees have been planted for this purpose,” he said.

    According to Soyoye, Lafarge  produces 90 megawatts (MW) of electricity to power its operations, with plans to increase this to 220 MW in future. When this is achieved, the country will benefit from a 30 MW to be injected into the national grid by the firm. This represents the excess from its requirement. It will however come at a cost to consumers.

    The planned injection to the national grid is in fulfilment of Lafarge’s Country Chief Executive Officer, Mr. Michel Puchercows’ promise to support the country in solving her energy problem.

    “We realised last year that dollars was scarce and energy was scarce in Nigeria. So, the company reacted very strongly. Ogun State, being an agriculture hub as well, made it possible for us to produce 50 per cent power from biomass in 2016, which we can grow up to 70 or 80 per cent. We aim to roll out the scheme in other plants; in Cross River State, and in Ashaka, Gombe State,” he explained.

  • Lafarge Africa partners COREN, on concrete manual

    Lafarge Africa Plc has become one of the key partners of the Council for the Regulation of Engineering in Nigeria (COREN) for the research and development of Nigeria’s first Concrete Mix Design Manual. The company is the country’s only cement and concrete manufacturer that contributed to the development of the manual which was launched on Tuesday in Abuja.

    Speaking at the ceremony, the Director of Marketing at Lafarge Africa Plc, Mr. Vipul Agrawal said: “We commend COREN for ensuring that Nigeria now has a credible, well researched Concrete Mix Design Manual to be used for concrete works in buildings and infrastructure projects in the country. We call on all those involved in the manufacturing and use concrete for infrastructure development in Nigeria to use the manual to make quality concrete in building durable structures.”

    On his part, the President of COREN Engr. Kashim Ali said: “I am glad that Nigeria now has its own Concrete Manual based on local environmental conditions and raw materials and does not have to depend on reference manuals of other countries.”  Ali stated that the manual will be constantly upgraded in line with improvements in building technology. The manual, he further noted, is a result of exhaustive research and testing with concrete materials in different parts of the country.

    The Deputy Governor of Bayelsa state, retired Rear Admiral John Jonah said the development was a big plus for engineering practice in Nigeria.

  • Lafarge’s CPTP: a boost to youth empowerment

    Lafarge’s CPTP: a boost to youth empowerment

    Youth unemployment is a major issue in the country. But experts say the solution to the problem, which hampers productivity and social harmony, ranges from entrepreneurship to technical apprenticeship. MUYIWA LUCAS writes on the Cement Professionals Training Programme (CPTP) by Lafarge Africa, which trains youths to acquire employable skills.

    The need to increase local content, especially in  multinationals, is one way to develop backward integration which the country  craves for.  Besides, such initiative has provided a safety net for operations of firms domiciled in hot areas in the country.

    It was for this that Lafarge Africa Plc, established the Cement Professionals Training Programme (CPTP), which began on June 8, to assist youths in its catchment areas.

    Under the scheme, over the next three years, 15 youths from Ogun, Gombe and Cross River states will be trained in mechanical, electrical, instrumentation, automation technology, cement manufacturing process and entrepreneurship at Lafarge’s facilities in Ashaka, Ewekoro, Mfamosing (in Calabar) and Sagamu.

    With this, stakeholders are convinced that the firm has repositioned its flagship technical training programme for young Nigerians as part of its corporate social responsibility, as well as adding value to the development of the country, especially its host communities in Southwest, Southsouth and Northeast.

    The CPTP Manager, Mr. Michael Shokunbi, said while its objective remains the same as previous programmes’,  the coverage  has expanded to include science-based young school leavers from the Northeast and Southsouth.

    He said to make the CPTP effective, Lafarge was partnering the Industrial Training Fund (ITF), the Nigeria Employers Consultative Assembly (NECA) and the National Board for Technical Education (NBTE). The certificate awarded after the programme is accredited by NBTE and valid for admission into  universities.

    The Country Chief Executive Officer of Lafarge Africa, Michel Puchercos, said the CPTP was a national programme aimed at bringing about change in the society.

    He said: “Skills acquired through this programme will not only make these young men employable, but impact positively on our host communities,” adding that with more companies towing his firm’s example, host communities of companies will see a steep decline in youth restiveness.’’

    Communications, Public Affairs and Sustainable Development Director  Mrs. Folashade Ambrose-Medebem said the 15 youths in the CPTP would be trained to imbibe the culture of “safety first”.

    “We want to conduct business at zero harm to people and at zero cost to life. If we’re good in safety, then we’re good in business,” she said.

    In his message to the trainees, the Ogun State Commissioner for Education, Science and Technology, Modupe Mujota, challenged them to ensure they put the training to good use for the benefit of their community.

    “To whom much is given, much is expected. You are not here by chance; you have a specific and important role to play in ensuring that the three-year intensive multi-skilling vocational training will bring about improved standard of living in our communities,” she said.

    The earlier version of CPTP—developed in partnership with the ITF and the Nigerian Employers Consultative Association (NECA)—was launched in 2012 with 12 youths and increased to 21 in 2014. Its graduates were trained in automation, electrical and mechanical skills and awarded a diploma after the 18-month programme.

    The skills addressed the dearth of professional artisans and technicians, allowed the youth to be self-sufficient and support their local economy, and thus, reinforced bonds between Lafarge and the community.

    Three-quarters of the first set got jobs with Lafarge while others were engaged by Lafarge contractors.

  • Analysts bet on Lafarge, Forte Oil, others for high returns

    Investors looking for high returns on investment should include Lafarge Africa, Forte Oil and Julius Berger Nigeria Plc in their portfolios, investment analysts have said.

    Investment advisory reports by Afrinvest Securities and GTI Securities-two leading investment and stock broking firms, said Lafarge Africa, Forte Oil and Julius Berger Nigeria have potential for high returns in the period ahead.

    Afrinvest Securities, which placed a buy ticker on Lafarge Africa, said the cement company has an upside potential of 42.4 per cent, a direct reference to extent of capital gain that could accrue to investors in the company.

    According to Afrinvest, recent debt restructuring, energy source diversification and Nigeria price action remain positive drivers of forward earnings for Lafarge Africa.

    Analysts noted that Lafarge Africa’s last audited report comfortably outperformed analysts’ estimates on key earnings metrics pointing out that earnings had also stayed resilient in 2017.

    Lafarge Africa grew sales by 55.1 per cent and reversed its negative bottom-line with a pre-tax profit of N9.45 billion in the first quarter of 2017 as the cement company ramped up the use of alternative and logistics efficiency to drive growth.

    Key extracts of the interim report and accounts of Lafarge Africa for the three-month ended March 31, 2017 showed that sales rose to N81.31 billion in first quarter 2017 as against N52.42 billion recorded in comparable period of 2016. Gross profit jumped by 168.5 per cent from N7.78 billion in first quarter 2016 to N20.89 billion in first quarter 2017.

    Compared with pre-tax loss of N2.22 billion in first quarter 2016, the cement company recorded a pre-tax profit of N9.45 billion within the first three months of 2017. Profit after tax also improved significantly to N5.16 billion in first quarter 2017 compared with net loss of N1.87 billion in corresponding period of 2016. Earnings per share thus reversed from a loss of 19 kobo in 2016 to a positive of 92 kobo in 2017.

    The report also showed improvement in the balance sheet of the cement group. Total assets rose to N523.76 billion by March 2017 from N502.49 billion recorded by the period ended December 31, 2016. The balance sheet growth was driven by improvements in both fixed and current assets. Total equity funds also increased from N248.95 billion by December 2016 to N263.38 billion by March 2017.

    Another investment advisory report by GTI Securities highlighted Forte Oil and Julius Berger Nigeria as two of the best stocks for investors looking for high returns within a 12-month period.

    According to the report, Forte Oil has potential to generate capital appreciation of about 250 per cent with an expected target price of N170.41 by the end of the period as against its current price at the stock market.

    The report also indicated that Julius Berger Nigeria could post a return of about 117.80 per cent within the period as the share price of the construction firm is expected to rise from its current level to close the period at about N70.

    Analysts noted that the 414 megawatts Geregu Power Plant of Forte Oil has started to contribute significantly to the group’s top-line as power generation contribution to revenue increased by 118.61 per cent year-on-year and accounted for 19.79 per cent of total revenue in first quarter of 2017 compared to 8.39 per cent of total revenue in comparable period of 2016.

    Forte Oil has 51 per cent stake in a 414 megawatts gas-fired independent power plant, which is selling power to the Nigerian power grid on a guaranteed basis.

    “This trend is expected to continue with the power generation business further boosting revenue growth especially with the present drive by the government to ensure that power generation in the country increases. Forte Oil also has the capacity to push higher fuel and lubricants volume sales through its recent retail outlet expansion financed through its issued bonds,” GTI Securities stated.

    The report noted that Julius Berger Nigeria has a huge public sector portfolio which includes several high-profile projects including permanent site of the National Institute for Legislative Studies, Abuja, new residences for presiding officers of the National Assembly, Abuja; rehabilitation and extension of Airport Expressway, Abuja; rehabilitation of Badia Roads, Lagos; Lagos–Badagry Expressway, Lagos and Lagos–Ibadan Dual Carriageway, Section 1, Lagos–Shagamu among others.

    “We expect that with the focus of the government on infrastructure development a lot of the allotted N1.8 trillion, 30 per cent of the total budget for 2016, will go to ongoing projects across the country.

  • Lafarge trains host communities on cement; offer employment

    Lafarge trains host communities on cement; offer employment

    In its continued bid to further impact on its host communities, building solutions provider, Lafarge Africa Plc, has concluded arrangement to further empower indigenes of its operating areas.

    To this end, 15 youths from Ogun, Gombe and Cross River states have been enrolled in the maiden Cement Professional Technician Programme (CPTP). The programme involves the training of youths in the cement manufacturing process.

    The three-year all-expense-paid residential programme includes training in mechanical, electrical, instrumentation and automation technology, cement manufacturing process and entrepreneurship. The selected youths will receive practical and theoretical training at Lafarge Africa’s state-of-art centres and plants in Ashaka, Ewekoro, Mfamosing (Calabar) and Sagamu. Participants who successfully complete the training will be offered automatic employment within Lafarge Africa.

    The Communications, Public Affairs and Sustainable Development Director of Lafarge Africa, Mrs. Folashade Ambrose-Medebem, at the launch of the programme at Ewekoro, Ogun State, said the initiative will increase the local content of Lafarge’s operations in the country and also bridge the skills gap in the cement industry.

    She explained that the programme is in partnership with the National Board for Technical Education (NBTE), Industrial Training Fund (ITF) and the National Consultative Assembly (NECA); the certificate awarded after the programme is accredited by National Board for Technical Education (NBTE), and is valid for admission into any Nigerian university.

    Ambrose-Medebem, who represented the Lafarge Africa’s Country Chief Executive Officer, (CCEO), Mr. Michel Puchercos, noted that the Cement Professionals Training programme is a Corporate Social Responsibility (CSR) initiative hinged on the firm’s five pillars of health, safety, education, infrastructure as well as clean environment.

    Shedding more light on the programme, the Health & Safety Director, Lafarge Africa, Mr. Graeme Bride, noted that the selected youths will be trained to imbibe the culture of “Safety First” as it operates in any Lafarge facility.