Lafarge Nigeria seeks N100 billion after merging Africa businesses

The Nigerian unit of  Lafarge Wapco plans to seek shareholders’ approval in July to raise N100 billion in public offer of debt or equity, the cement maker said on Wednesday.

The cement company said it would raise the fresh capital in the local and international market, it said in a notice to shareholders.

Lafarge announced plans late on Tuesday to combine its South Africa business with publicly traded Nigerian unit Lafarge Wapco, in a deal worth $1.35 billion, and listing its Africa interests together on the Nigerian Stock Exchange (NSE).

Shares in Lafarge WAPCO surged the maximum 10 percent allowed on the NSE on Wednesday 124.02 naira ($0.76) per share. Ashaka Cement, another listed Lafarge unit in Nigeria involved in the merger, also climbed the maximum 10 percent allowed.

The merger deal which will give Lafarge’s Nigerian unit a market capitalisation of over $3 billion on the Nigerian bourse, is subject to shareholders’ approval in July.