… Pays N1.05 kobo dividend
Major cement producing company, Lafarge Africa Plc has secured shareholders’ approval to raise additional ₦140 billion capital, through a rights issue, just as it proposed a dividend of ₦1.05 kobo per share to members on the company’s register.
The dividend which was approved at the company 58th Annual General Meeting (AGM) in Lagos on Wednesday, amounts to ₦5.8 billion, representing 34.7 percent of the company net income after tax.
Speaking on the proposed right issue, chairman of Lafarge Africa Plc Mobolaji Balogun, explained that it was an important step in resolving the company’s foreign exchange exposure and its impacts on the company earnings and positions the company for their future capacity expansion plans.
Balogun pointed out that “in addition to reducing our debts, the rights issue to raise up to ₦140 billion provides all our shareholders the opportunity to increase their investment in the company.
The recapitalization is positive and our largest shareholder, LafargeHolcim have committed to subscribing to their rights in full through a conversion of existing shareholders loans.
He noted that the investment is a strong indication of the group’s continued belief in the Nigeria, stressing that it’s the largest right issue and the largest investment in a listed company by an investor.
On the concern raised by shareholders, if the Lafarge Africa will not delist after raising the money, Balogun debunked the fear, while he urged existing shareholders to pick up their rights once it opens.
According to Balogun the issue which would get statutory regulatory approvals from regulatory authorities of the capital market, is expected to open in the third quarter of 2017.
Aside the capital raising, shareholders also authorized the liquidation of Egyptian Cement Holding B.V (ECH) and Nigerian Cement Holding B.V (NCH) and the transfer of all the assets and liabilities to the company.
Responding to some issues raised by shareholders relating to energy and operational challenges, Michel Puchercos, the country Chief Executive Officer, said the plan was on to increase the use of alternative energy sources, from biomass and locally mined coal to lessen production disruptions caused by gas supply shortages.
On the company future plan, Balogun, said the turn-around plan that was launched last year is already impacting positively on the financial results for 2017. Adding that they will increased local sourcing of critical materials to lower foreign exchange component of their operational costs.