Giant cement manufacturer, Lafarge Africa Plc has announced its plan to raise N131.65 billion through right issue of N3,097 billion ordinary shares of 50 kobo each at N42.50 per share on the basis of 36 new shares for every nine ordinary shares held.
The right issue which is the single biggest in the history of the Nigerian Stock Exchange (NSE) and the company’s first since 2015 saw the acceptance list opened November 24, 2017 to close on December 15.
The right issue is open to existing shareholders whose names appear on the register of members.
The Managing Director, Mr. Michael Punchercos, said: “The cash proceeds will essentially be utilised to deleverage the company, support working capital and expand operations by providing headroom for additional capital, help with cash preservation and improve liquidity.”
He said the N130bn proceeds, after deduction of the offer cost of N1.3bn, would be applied with debt to equity conversion taking N92bn, working capital at N18.6bn and expansion of operation at N18.6bn.
Punchercos said the right offer will provide the opportunity for minority shareholders to increase their investment in the company, Daily Trust reports.
The issued will also be tradable by shareholders on the floor of the Nigerian Stock Exchange during the period of the offer.
