Lafarge Africa Plc on Wednesday announced the sale of its South African subsidiary, Lafarge South Africa Holdings (LSAH).
A disclosure sent to the Nigerian Stock Exchange Wednesday said the decision followed approval by shareholders at the 60th Annual General Meeting of the Company held on Monday, July 22nd.
The disclosure, signed by Adewunmi Alode, the company’s general counsel and secretary, noted that a transaction closing meeting was held on Wednesday at which parties to the transaction exchanged documents as specified in the Share Purchase Agreement.
“The closing meeting therefore brings to a conclusion the
divestment of Lafarge Africa Plc (“the Company”) from LSAH,” the disclosure notice said.
The company said as approved by shareholders at the last Annual General Meeting, the agreed sale price of US$316,289,060.55 was utilized to settle the entire principal (US$ 293,000,000) and accrued interest to 31st July, 2019 (US$23,289,060.55) on the Inter Company loan owed to Caricement BV (Purchaser).
With this set-off, the company said it does not have any foreign currency debt on its books with the only debt being the N33.6 billion corporate bond due for redemption in June 2021.
In addition to that, it said the company has another outstanding N16.0 billion on Central Bank Of Nigeria Intervention loans through the Bank of Industry.
Earlier in June, Lafarge said the sale was expected to enhance the value of shareholders’ investments, which was of utmost importance to the board.
It said following the conclusion of the sale, its shareholder loan of $293 million would be completely extinguished.