Lafarge consolidates position with new Africa building materials platform

Poised to strengthen its position in Nigeria as well as benefit from growth and development opportunities in the country and Southern Africa, Lafarge is combining its Nigerian and South Africa businesses to create Lafarge Africa, in what will be a leading sub-Saharan Africa building materials platform.

Lafarge Group had announced its intention to transfer all of its shares in its businesses in Nigeria and South Africa into Lafarge Cement WAPCO Nigeria Plc.

When finalised, Lafarge Cement WAPCO Nigeria Plc will be renamed Lafarge Africa Plc, which will be owned 73 percent by Lafarge Group and remain listed on the Nigerian Stock Exchange.

The new entity will have nationwide coverage in both Nigeria and South Africa, with cement capacity of about 12 million tonnes, as well as operations in aggregates, ready-mix and fly ash.

Olusegun Osunkeye, chairman of Lafarge WAPCO, said: “I am proud to be part of the creation of this leading African building materials platform. It will provide access to growth in two of the largest economies on the continent. It will mean that our shareholders are invested in a larger and more geographically diverse business; and it will contribute significantly to the economic growth of both our nations. “

Guillaume Roux, Lafarge Group EVP operations and country CEO Nigeria, said the announcement marked a key milestone and added momentum to their push for differentiation in order to deliver innovation that increases and improves their product portfolio. “Our objective is to bring more housing and ever better solutions to contribute to building better cities that are more beautiful, more compact, more connected and more durable.”

Under the proposed terms, Lafarge Group will transfer its direct and indirect shareholdings in Lafarge South Africa Holdings (Pty) Limited (100 percent – representing 72.4 percent of underlying companies in South Africa), United Cement Company of Nigeria Limited (35 percent), AshakacemPlc (58.61 percent) and Atlas Cement Company Limited (100 percent) to Lafarge WAPCO.

The transaction will be concluded through a cash consideration of $200m and the issuance of 1,402,575,984 Lafarge Africa shares to Lafarge Group. The transaction, which is subject to Lafarge WAPCO shareholder approvals and obtaining required regulatory and other customary authorisations, is anticipated to be completed during the second half of 2014.

The strong operational track record and management skills within the combined businesses as well as continued support and expertise from Lafarge Group will position Lafarge Africa to offer a full range of value added solutions to meet customers’ needs, the company said.