The Board of AshakaCem has approved the exchange of shares held by minority shareholders for shares in Lafarge Africa, the majority shareholder.
The approval was given at the Extraordinary General Meeting (EGM) held in Abuja on Monday, October 23, 2017.
Minority shareholders will receive 57 Lafarge Africa shares for every 202 AshakaCem shares. This makes AshakaCem a fully-owned subsidiary of Lafarge Africa and offers its shareholders the window to liquidate their investments following the delisting of the Gombe-based cement maker from the trading floor of the Nigeria Stock Exchange in July 2017.
Bruno Bayet, Chief Financial Officer of Lafarge Africa said, “The minority shareholders of Ashaka now have the opportunity to be part of Lafarge Africa with total installed production capacity of over 14 million metric tonnes per annum and strong growth prospects.”
For instance, AshakaCem operations utilized 82 percent of coal over the period. And according to Edith Onwuchekwa, Chairman of AshakaCem, “The erection a 16 MW coal fired captive power plant at Ashaka is nearing completion and will significantly ensure the stability of electric power to the plant and the optimization of our energy costs at the plant.”
Speaking at the EGM in Abuja Michel Puchercos, CEO of Lafarge Africa said: “We remain committed to Ashaka in good times and in bad times because we have a long-term view of our investments. Ashaka cement as a brand has for decades become synonymous with housing and infrastructural solutions in the entire north. We shall maintain that legacy of quality even in the face of temporary setbacks.” Though now a 100 percent subsidiary of Lafarge Africa, Ashaka cement will have its own board of directors. Also, sale of cement products under the widely known AshakaCem brand will continue in the north.
Photo Caption:Lafarge Africa Logo