• World
  • Columnist
  • Commodities
  • WORLD BUSINESS & ECONOMY
  • Executive Knowledge Series
  • Finance
  • Manufacturing
  • Markets
  • Risk & Governance
  • Small Business
  • Technology, Media & Innovation
  • Comments
  • Business AM WebTV
  • Login

Businessamlive
  • FRONTPAGE
  • FINANCE
    • AllAsset ManagementAuditBankingBondBudgetCapital MarketsC&I LeasingCurrencyDealDebt marketForexFund RaisingFundingGovernmentHedge FundsInsuranceInvestmentInvestorInvestor ServicesMergers & AcquistionsMoney marketTreasury BillsMortgagePensionsPersonal financePonziQuantitative EasingshareTaxationTSAWealth Management
      Companies

      Total Nigeria, Mixta, Valency, list new CPs on FMDQ platform to enhance financial markets development

      17 hrs

      Finance

      Amidst N32.22trn public debt, analysts say Nigeria’s external debt service manageable

      21 hrs

      Finance

      Stringent regulations, business environment forced Stanbic IBTC out of BDC business

      January 15, 2021

      Finance

      Cautious equities trading see gains in Flour Mills, Mobil, Wapco push market cap to ₦21.09trn

      January 15, 2021

  • MARKETS
  • ECONOMY
    • AllAfricaAgricAirportsAmericaAsiaAustraliaBreakthroughDealEuropeForeign InvestmentsforexGlobal marketGovernanceIMFMiddle EastNECANigeriaOutlookRich listSouth AfricaSport BusinessTradeU.KWest AfricaWorld Economic forum
      Commodities

      LME contemplates permanent shutdown of historic trading ring

      4 hrs

      WORLD BUSINESS & ECONOMY

      China’s economy grows 2.3%, with potentials to overtake U.S. beyond expectations

      17 hrs

      WORLD BUSINESS & ECONOMY

      Uber leads with 30% as 10 biggest startup layoffs in 2020 reach 25,000

      18 hrs

      Companies

      TIPP Oil, German lubricant maker, targets 2021 Nigeria launch with eco-friendly scheme  

      18 hrs

  • COMMODITIES
  • ENERGY
    • AllConferenceElectricityOil and GasPowerRenewable
      Companies

      TIPP Oil, German lubricant maker, targets 2021 Nigeria launch with eco-friendly scheme  

      18 hrs

      Frontpage

      Nigeria aims for cost efficiency, safety, value in oil sector with centre of excellence

      19 hrs

      Frontpage

      Sustainable energy: Minister estimates solution to cost Nigeria $4bn in annual spend

      21 hrs

      Frontpage

      NNPC receives $120.49m crude oil receipt in September  

      January 18, 2021

  • TECHNOLOGY
  • MANUFACTURING
  • ANALYSIS
    • Analyst Insight

      CBN meeting and NSE in focus

      January 18, 2021

      Analyst Insight

      Once again, fiscal stimulus takes centre stage

      January 18, 2021

      Analyst Insight

      Organisations must learn from the WhatsApp story  

      January 18, 2021

      Analyst Insight

      Data privacy maturity model in organisations

      January 11, 2021

Companies

Lafarge, Unicem in business combination for size, competition

Niyi Jacobs

Reporter

June 7, 20171.1K views0 comments

The shareholders of Lafarge Africa Plc, coming out of the company’s 58th Annual General Meeting (AGM) in Lagos Wednesday approved the proposed business combination with Unicem that would see the size of the company increase to position it for market competition.
They also approved the payment of N1.05 as dividend per share presented by the directors. The board of directors of the company equally sought and got the approval of the shareholders to issue scrip dividends or right issue of about N140 billion.Image result for Lafarge, Unicem
Uzoma Uja, Lafarge company secretary said the proposals are expected to strengthen the balance sheet and capital structure of the company by reducing foreign currency exposure and optimizing the Lafarge Africa organization, adding that combined with improved (operating) performance, the proposals will strengthen Lafarge Africa’s expansion in Nigeria.
Unicem, a 100% owned subsidiary of the company, has Forex loan of approximately USD600m, which was incurred for the completion of a 2,5mtpa production line and the commissioning of line 2, another 2,5mtpa production output.
Between Q4 2016 and April 2017, 50% of the outstanding loan was hedged using the Non-Deliverable Futures window of the Central Bank of Nigeria.
But under the rights issues, LafargeHolcem Group will take up its rights and convert its portion of the loan to equity.
When the rights issue is opened, all shareholders will have the same proportionate rights in line with their shareholding in the company.
Mobolaji Balogun, chairman of the company, said the proposed dividends, represent 34.7 per cent of net income after taxation.
“The economic environment we were confronted with in 2016 and the exceptional items which contributed to reduced profit after tax, meant that a decision not to pay dividend would not have been unreasonable.
“However, the company’s board of directors felt the need to reward the support of all pour shareholders over the years,” he said.
He said the company’s turn-around plan launched at the beginning of 2016 Q3 was already impacting positively on the financial results of 2017.
According to him, the plan resolves around achieving high reliability across Lafarge’s production facilities, increasing the use of alternative fuel (biomass) and locally-sourced coal as a way to mitigate disruption of production by gas supply shortages and the impact and the impact of devaluation on cost of gas.

Read Also:

  • Stringent regulations, business environment forced Stanbic IBTC out of…
Share on Facebook Tweet Email
TagsLafarge Unicem\
PreviousLafferty daily briefing
NextNigeria falls behind Egypt in foreign reserves, first time in six years

Leave a comment

- Cancel reply

MARKET DATA

Market Videos

Recent Posts

  • Access Bank unfolds ambitious expansion into Africa, global markets leveraging HoldCo structure
  • Nigeria bourse chief pleads caution on 2021 growth expectations
  • Selloffs in BuaCem, Access, UBA push Nigeria bourse under waters
  • Shippers Association predicts shortfall in cargo imports as covid-19 bites harder
  • LME contemplates permanent shutdown of historic trading ring

World

Africa

Buhari, Okonjo-Iweala congratulate Adesina over reelection as AfDB President

Europe

EU businesses to cut investments in 2020, says EIB report

America

U.S. increases cost of visa application for Nigerians

Africa

Thatcher-Loving Nigeria Candidate Plans to Overhaul Economy

Africa

AfDB scales up industrialization pace on the continent, delivers improved business access to finance, skills, energy

Frontpage posts

0

Operators seek FG’s intervention in Oando, SEC saga

Frontpage June 6, 2019

1
2

Nigeria’s manufacturing index expands further in September as economy consolidates Q2 growth

Frontpage September 28, 2017

3

SEC in talks with NNPC, NLG, foreign firms to list on NSE

Frontpage October 22, 2019

4

CBN director links Fintech growth during pandemic to fear of touching cash

Frontpage November 26, 2020

5

Access Bank Set to Acquire Kenyan Bank

Frontpage October 28, 2019

SUPPORT

  • Photo Gallery
  • Help Centre
  • About Us
  • Accessibility

LEGAL & PRIVACY

  • Terms & Conditions
  • Privacy
  • Cookies
  • Copyright

SERVICES

  • Conferences & Events
  • Analysts Research
  • Advertising Rate
  • Ebooks

TOOLS

  • Portfolio
  • Newsletters
  • News feed
  • Currency Converter

SUBSCRIBE

Join us to get latest updates on business related news.

[mc4wp_form id="3076"]
  • ABOUT US
  • CONTACT US
  • CAREERS
  • TERMS & CONDITIONS
  • PRIVACY POLICY
Copyright 2017. All rights reserved. BusinessAMLive. A Businessnewscorp Member Company.