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Tag: LafargeHolcim

  • Nigeria wins first ever LafargeHolcim Awards for MEA

    Lafarge’s Nigeria has won the inaugural Corporate Social Responsibily (CSR) Awards of LafargeHolcim for the Middle East and Africa. This is in recognition of its innovative and impactful social investment in 2018. The announcement was made recently by Miljan Gutovic, Regional Head, LafargeHolcim for the Middle East and Africa (MEA).

    Nigeria won the overall award after beating 35 other countries in two of the four categories. The country won gold for its CSR initiatives in the Education and Employment category ahead of Egypt (silver) and Kenya (bronze). Nigeria also won gold in the Shelter and Infrastructure category ahead of Morocco (silver) and Cote d’Ivoire (bronze).

    While making the announcement, Gutovic congratulated all participating countries for showcasing the critical and impactful work done in host communities to bring LafargeHolcim’s global sustainable development strategy to life.

    “The projects presented during the competition demonstrate our commitment across the Middle East and Africa region to enriching lives within and beyond our fence. I want to thank all participants for the enthusiasm shown in making real impact in the lives of people in the countries where we operate.” Gutovic noted.

    The contribution by the Nigeria office takes its inspiration from the LafargeHolcim 2030 plan, which aims to lead in sustainability and set new standards. By the year 2030, the company’s ambition is to have transformed the way the industry works. It aims to set a strong example for the construction sector to play its part in addressing the planet’s biggest issues. As the global leader in the construction and building materials industry, LafargeHolcim has the opportunity, responsibility and the will to make a positive difference.

    As a reward for coming tops, Nigeria’s winning initiative will be replicated across the Middle East and Africa to consolidate on its gains.

    In Nigeria, since 2014, Lafarge has worked assiduously to beat the housing deficit in the country while also helping to meet the United Nations’ Sustainable Development Goal 9 – Industrial innovation and Infrastructure and Goal 11 – Sustainable Cities and Communities.

    Lafarge introduced the Easy Home initiative in Nigeria, an ambitious housing solution, which, using strategic partnerships helps individuals build decent homes with a low budget. The company also links prospective home builders to financiers, qualified building professionals and high-quality materials. In 2016 alone, over 30,000 people benefited from the initiative and the aim is to reach a lot more people by the year 2030.

    In 2017, Lafarge Africa created the Cement Professionals Training Program (CPTP), a programme that helps youths with entrepreneurial spirit to achieve their goals in the fields of technology, engineering, cement manufacturing, instrumentation and automation. In its first year, more than 30 youths have been impacted by the programme.  In the same year, the company made large investments in diverse social investment programs and initiatives in its host communities across the country, directly impacting more than 450,000 beneficiaries.

    Also, to support the United Nations’ Sustainable Development Goal 5 – Quality Education, Lafarge Africa has complemented Nigeria’s efforts to improve education at the primary level through the Lafarge Africa National Literacy Competition. Since 2014 when the project kicked off, over 600,000 public primary school pupils have been impacted across 544 Local Government Areas in Nigeria.

  • LafargeHolcim to convert N7b debt to equities in N90b rights issue

    LafargeHolcim, the world leader in building materials and majority foreign core investor in Lafarge Africa Plc, plans to convert about N6.8 billion of its outstanding loan to Lafarge Africa to additional shareholdings in its Nigerian subsidiary.

    The conversion of some $22.2 million from the total outstanding intercompany loan of $315.2 million due to LafargeHolcim is part of a proposed rights issue of N90 billion, scheduled for the fourth quarter of this year.

    Lafarge Africa shareholders are scheduled to meet next month at an extraordinary general meeting to consider many resolutions, including increase in the company’s share capital, N90 billion rights issue and authority of the board to engage in related party transactions.

    Preliminary documents on the balance sheet restructuring obtained by The Nation indicated that the debt-to-equity conversion is part of loan restructuring arrangement under which the total outstanding intercompany loan will be split into many tranches to allow Lafarge Africa repay each split loan as the company’s cashflows permit.

    Lafarge Africa will also use part of the net proceeds of the N90 billion rights issue to repay its short-tenored loans, in addition to cash generated from its main business operations.

    Under the preliminary terms of the debt restructuring, LafargeHolcim will restructure the current intercompany loan without having to increase the principal amount owed by Lafarge Africa, and  without having to advance any additional principal sums to the company.

    Also, LafargeHolcim will provide another standby loan of $20 million, to assist Lafarge Africa to bridge its working capital requirements. The loan will be drawn only as required and on the approval of Lafarge Africa’s board of directors.

    According to directors of Lafarge Africa, the terms of the proposed restructured loans will provide the company with much-needed flexibility considering the company’s current financing arrangements. The terms provide two-year moratorium on the long term loans while Lafarge Africa’s repayment obligations in the next three months will be extended into seven and a half years restructured tenor.

    The board, which is urging shareholders to approve the resolutions, stated that the restructuring of the loans will improve Lafarge Africa’s cashflows; given the moratorium and extended repayment period.

    However, the debt-to-equity conversion may further increase LafargeHolcim’s majority shareholding in the Nigerian subsidiary.

    LafargeHolcim had through a similar rights issue and debt-to-equity conversion deal in 2017 increased its equity stake in the Nigerian subsidiary to 76.32 per cent, now controlling the much-needed three-quarters percentage shareholdings necessary for major corporate changes.

    LafargeHolcim took advantage of the N131.65 billion rights issue in 2017 to increase its majority equity stake 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. LafargeHolcim had earlier indicated it would subscribe fully to its rights under a debt-for-equities deal that will see conversion of LafargeHolcim’s dollar-based loan to equities.

    Lafarge Africa last November 24 launched an offer to raise N131.65 billion through a rights issue of about 3.1 billion ordinary shares of 50 kobo each at N42.50 per share. The new shares were pre-allotted to shareholders on the basis of five new ordinary shares for every nine ordinary shares held as at the close of business on November 1, 2017. The acceptance list opened last November 24 and ran till the close of business on December 15, last year.

    Lafarge Africa has struggled in recent period under a high leverage, largely due to acquired debt from the merger with United Cement Company of Nigeria (Unicem) Limited. Prior to the 2017 rights issue, Lafarge Africa was indebted to LafargeHolcim $659.2 million, largely due to the balance of the short term intercompany loans advanced by Holcim Group to Unicem before Holcim Group’s global merger with Lafarge S.A.

    Following Lafarge Africa’s 100 per cent acquisition of the equity of Unicem and the subsequent merger of Unicem into Lafarge Africa, Lafarge Africa assumed the position of the borrower. The intercompany loans were advanced mainly for the completion of two lines of the 5.0 million metric tonnes per annum cement plant at Unicem’s Mfamosing Cement Plant in Calabar, Cross Rivers State and the purchase of 15 per cent equity in Unicem previously held by Flour Mills of Nigeria Plc.

    Under the terms of the 2017 rights issue, any creditor shareholder could subscribe to their rights by way of a debt to equity conversion. Consequently, LafargeHolcim converted $262 million of the shareholder loan to equity, leaving a balance of $309.2 million. After the rights issue, Lafarge Africa also paid $82 million, leaving a current balance of $315.2 million.

  • LafargeHolcim increases stake in Lafarge Africa

    LafargeHolcim-the world leader in building materials and majority foreign core investor in Lafarge Africa Plc, has increased its equity in the Nigerian subsidiary to 76.32 per cent to control the much-needed three-quarters percentage shareholdings necessary for major corporate changes.

    A latest review of the shareholding structure of Lafarge Africa indicated that LafargeHolcim took advantage of the recent rights issue by Lafarge Africa to increase its majority stake 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. LafargeHolcim had earlier indicated it would subscribe fully to its rights under a debt-for-equities deal that will see conversion of LafargeHolcim’s dollar-based loan to equities.

    Lafarge Africa three weeks ago listed about 3.1 billion ordinary shares of 50 kobo each. The supplementary shares arose from the cement company’s recent rights issue. Lafarge Africa had on November 24, 2017 launched an offer to raise N131.65 billion through a rights issue of about 3.1 billion ordinary shares of 50 kobo each at N42.50 per share. The new shares were pre-allotted to shareholders on the basis of five new ordinary shares for every nine ordinary shares held as at the close of business on November 1, 2017. The acceptance list opened on Friday November 24, 2017 and ran till the close of business on Friday, December 15, 2017.

    With the listing of the additional shares totalling 3.098 billion ordinary shares, the total issued and fully paid up shares of Lafarge Africa increased from 5.576 billion to 8.673 billion ordinary shares.

    Chairman, Lafarge Africa Plc, Mr. Mobolaji Balogun, has said the recapitalisation would help 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.

    Balogun noted that LafargeHolcim’s decision  to convert existing loans to 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.

  • 75 Nigerians vie for LafargeHolcim awards for sustainable construction

    75 Nigerians vie for LafargeHolcim awards for sustainable construction

    Seventy-five Nigerians (students and professionals) are part of the finalists joining hundreds of their colleagues from the Middle East and Africa for the LafargeHolcim regional awards for Sustainable Construction in Nairobi, Kenya this week.

    Organized by the LafargeHolcim Foundation for Sustainable Construction, it is the most significant global competition in sustainable design.

    “We are excited Nigeria is taking part for the first time as a country and with the impressive turnout of entrants. Even more, Nigeria is home to some of Africa’s fastest growing cities and the competition will promote sustainable projects and concepts the country needs to urgently address its peculiar challenges of urbanization.”, says Folashade Ambrose-Medebem, Director Communications, Public Affairs and Sustainable Development at Lafarge Africa Plc.

    The combined population of Nigeria’s fastest growing cities: Abuja, Benin City, Ibadan, Kaduna, Kano, Lagos, Onitsha and Port Harcourt is expected to swell to 54m by 2030, according to UN Habitat. This edition of the competition is seeking smart and sustainable construction solutions for cities.

    LafargeHolcim’s sponsorship of the awards over the years validates its commitment to sustainability, innovation and architectural excellence. This is a corporate social responsibility initiative geared to ensure that the world builds better.

    All entries from the fields of architecture, urban design and planning, and civil engineering are judged based on the target issues for sustainable construction: Progress, People, Planet, Prosperity and Place.

    Regional winners in the three categories (Main, Next Generation and Focus) will be awarded a total of USD 330,000. In all USD 2 million in prize money is awarded in each three-year cycle.

    The LafargeHolcim Awards is open to students, architects, planners, engineers, project owners, builders and construction firms in 90 countries where the LafargeHolcim Group operates.

  • 26 vie for LafargeHolcim’s $2m

    Twenty-six Nigerians are vying for the fifth International LafargeHolcim Awards. The awards, which is held in a three-year-circle, is worth $2 million. It seeks to balance environmental performance, social responsibility and economic growth.

    LafargeHolcim Awards, according to the sponsors, is the most significant project competition in sustainable design, and it seeks projects that go beyond balancing environmental performance, social responsibility, and economic growth.

    Other considerations include entry depicting a project that exemplifies architectural excellence; a high degree of transferability, such that it extends notions of sustainable construction throughout all stages of a project’s lifecycle.

    Also, irrespective of scale, such entry must provide sustainable response to technological, environmental, socio-economic and cultural issues affecting contemporary building and construction across the region of entry.

    Although a few Nigerians have participated in the previous editions of the competition, and producing a winner in the Acknowledgement Prize category, the competition, is being made public in Nigeria by Lafarge Africa for the first time. It is open to engineers, architects, builders, planners, construction firms, project owners, students and non-governmental organisations.

    It seeks to recognise and reward high profile projects from professionals as well as bold ideas from students and upcoming professionals in the built environment that combine sustainable construction solutions with architectural excellence.

    “The award is relevant to Nigeria, a country of over 170 million people that is urbanising rapidly and projected to be the third biggest country in the world by 2050. So far, 14 professionals and 12 students have submitted entries for the awards,” explained the Director of Communications and Public Affairs, Lafarge Africa, Mrs. Folashade Ambrose-Medebem.

    She urged interested stakeholders and beyond, who seek smart solutions for cities and the built environment, to key into the Award, which opened last July 4, closes on March 21. Eligibility of a project for entry should not have started before July 4 last year.

    The Head, Sustainability and Corporate Brand, Lafarge Africa, Mrs. Temitope Oguntokun, explained that the competition would target projects that embodied issues of sustainable construction such as progress, people, planet, prosperity and place, and provide the opportunity to institute the principles of sustainability for future construction.

    “Entry is free. We have two categories: the main category for professionals, whose projects are at an advanced stage of design with high probability of execution; and the next generation category, which is for students between the ages of 18 and 30, who have vision and bold ideas.

    “There is an urgent need to come up with clever ideas that optimise sustainability performance of buildings that we live and work in due to rapid urbanisation. This initiative is relevant to Nigeria, as there is a need for ideas to help bridge the housing deficit,” Oguntokun explained.

    As a global award, winners would be grouped into regional and global categories. Winners of projects in the main category would be get $100,000, while those of the next generation would be given $25,000, and the global winner would get $150,000.

    “There will be five regional award ceremonies in 2017, while the announcement of the global winner will be made in the second quarter of 2018. Three global award ceremonies will hold at the location of each winning project during the third quarter of 2018,” Oguntokun added.

  • LafargeHolcim global synergies manifest as Zambia profits jump

    The synergies expected from the merger of the world’s two biggest building materials companies-Lafarge, the French giant and Holcim, its Swiss rival, are beginning to manifest as LafargeHolcim’s Zambian operations reported a jump in profits and Moody’s affirmed the new cement giant.

    Lafarge Zambia Plc, a subsidiary of LafargeHolcim reported a four percent rise in profits in the first six months of 2015 to K187 million.

    The firm also saw its sales turnover jump by 14 percent to K700 million over the same period, while Earnings per Share rose by four percent to ZMW 0.936.

    “The company is ready to leverage the benefits of belonging to such a strong group. It is determined to keep its market leadership and continue to offer our customers the best quality products and services,” Lafarge Zambia Chief Executive Officer Emmanuel Rigaux said.

    The LafargeHolcim $40 billion merger which was completed  last month, creating the world’s most advanced building materials company. The new firm has vast Research and Development capability, comprising 13 product development laboratories around the world employing over 1,100 experts.  The global dimension of the merger has meant the new Group is benefitting from the size of its industrial network, which will facilitate optimisations . About €1.4bn in targeted synergies from the merger has already been confirmed.  There would also be a significant reduction in net debt of the combined company through divestitures, target for solid Investment grade credit ratings, solid margins (c.24 percent post synergies) and an attractive dividend policy.

    Ratings agency, Moody’s Investors Service, affirmed the merged entity’s strong balance sheet by upgrading the erstwhile standalone entity of Lafarge to Baa2.    “This brings the ratings in line with that of LafargeHolcim which has a stronger credit profile,” says Falk Frey Senior Vice President and lead analyst at Moody’s for Lafarge    “Moody’s generally views the strategic rationale of the merger as positive as the merged group will have an even more geographically balanced presence than former Holcim and Lafarge on a stand-alone basis.    This business profile should provide a better resilience to cyclical swings in demand for cement, aggregates and ready-mix concrete in individual countries,” Frey said. On a combined pro forma basis, LafargeHolcim sold 263 million tons of cement and 288 million tons of aggregates in 2014 with an installed cement production capacity of 386.6 million tons per annum.    On a pro forma basis, the group recorded net sales of CHF32.6 billion and an operating EBITDA of CHF6.7 billion for fiscal year 2014.

    LafargeHolcim generates approximately 60 percent of pro forma 2014 revenues in emerging markets. The remaining 40 percent are generated in developed markets.    LafargeHolcim is a major player in the Nigerian market with significant or complete ownership of Ashaka Cement, Atlas Cement, Lafarge Ready-mix, UniCem and WAPCO.

    The business continues to be known as Lafarge Africa Plc in Nigeria-Lafarge Africa Plc is a holding company of LafargeHolcim assets in Nigeria and South Africa-it’s HQ is in Lagos where it is listed on the Nigerian Stock Exchange.

    “The merger would have a positive impact on the ongoing consolidation of the Nigerian operations of Lafarge,” Kayode Omosebi, a research analyst at Lagos based Investment firm, United Capital Plc, said.    “We expect to see synergy gains from its consolidation in coming quarters as a combination of economies of scale, cost efficiency, innovation, better scope of operation and a more diversified product portfolio will boost performance and increase market share. We anticipate an increase in market share supported by its differentiated product offerings and its focus on corporate demand. Furthermore, increasing production from UNICEM and a more stable Ashaka will support growth from the company,” Omosebi said.

    In the Philippines listed cement maker Holcim Philippines Inc., (which is a subsidiary of LafargeHolcim) is confident that its output target for 2017 of 10 million metric tons (MT) is achievable by late 2016.  “We are now a part of the LafargeHolcim group… What we’re after is to supply customers. If we supply more customers and eventually increase market share, then it’s better for us,” Holcim President and Chief Executive Officer Eduardo Sahagun said.  LafargeHolcim is listed on the stock exchanges in Paris and Zurich.