Business
Lafarge shares rise 9.95% after announcement of sales of S’African unit
The share price of Lafarge Africa Plc on Thursday gained 9.95 per cent after the company announced plans to sell its South African unit.
The share price rose from N9.55 on Wednesday to N10.50 towards the end of trading at about 2:11 pm on Thursday.
Lafarge had in a statement addressed to the Nigerian Stock Exchange (NSE) on Wednesday informed of the proposed sale of 100 per cent of the issued share capital in Lafarge South Africa Holdings Limited to Caricement B.V.
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The statement read in part, “The board arrived at the conclusion that the disposal of LSAH was the best option for halting the potential impairment.
“The proposed sale is expected to enhance the value of shareholders’ investments, which is of utmost importance to the board. Following the conclusion of the proposed sale, the shareholder loan of $293m will be completely extinguished.”
“From the effective date of the sale, Lafarge Africa will cease to own the 100 per cent equity interest in LSAH, which will be transferred and relinquished to Caricement. Accordingly, from that date, Lafarge Africa will have no obligations or interests regarding LSAH and the accounts of LSAH will no longer form part of Lafarge Africa’s consolidated accounts.”
By Babatunde Alao…
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