By Nse Anthony-Uko
(Sundiata Finance) — The Nigerian Stock Exchange (NSE) has delisted Ashaka Cement Plc from the Exchange, paving the way for the subsidiary of Lafarge Africa to revert to a private limited liability company. In a release to the investing public, stated that the company has been voluntary delisted from the daily official list of the exchange yesterday, May 4, 2017.
It stated that the application for the voluntary of Ashaka Cement was approved on May 25, 2017 by the Quotations Committee of the National Council of the NSE The approval by the Quotation Committee of the Exchange capped a long-drawn process that had seen Lafarge Africa staking cash and shares in many tender offers aimed at acquiring minority shares in Ashaka Cement.
The company stated that following the voluntary delisting, former shareholders of the company who have exercised the option to exist the company prior to the delisting will received as agreed at the Extra-Ordinary General Meeting.
Lafarge Africa had separately launched a Mandatory Tender Offer (MTO) and Voluntary Tender Offer (VTO) to acquire minority shares in Ashakacem. During the MTO and VTO, Lafarge Africa offered 57 new Lafarge Africa shares for 202 AshakaCem shares and a cash consideration of N2 per every AshakaCem exchanged.
Shareholders of AshakaCem had at an extraordinary general meeting (EGM) in December 2016 approved the resolutions for a voluntary delisting of the company from the NSE. With the approval at the EGM, shareholders were given a 90-day window to decide on the exit plan on offer, in line with the requirements of the NSE on voluntary delisting.
The board of Ashakacem said the voluntary delisting and full integration of the company as subsidiary of Lafarge Africa will offer minority shareholders many benefits, including revenue diversification by geography as a result of Lafarge Africa’s operations in Nigeria, South Africa and Ghana.
They added that shareholders also stand to benefit from revenue diversification by plant location due to wide spread operations across the Northeast, Southeast and Southwest regions of Nigeria. The company indicated that for shareholders that do not want to remain in Ashaka Cement will received from the company a payment of N15.74 per share.
Lafarge had on July 9, 2014 received shareholders’ approval to consolidate its cement businesses in Nigeria and combine these with South African operations to create a leading sub-Saharan building materials giant to be known as Lafarge Africa Plc. The consolidation was done by transferring Lafarge’s assets in South Africa and Nigeria to Lafarge Cement Wapco Nigeria Plc.
Under the transaction, Lafarge Group transferred its direct and indirect shareholdings in Lafarge South Africa Holding Limited of 72.4 per cent and its equity in three other cement companies in Nigeria-United Cement Company of Nigeria Limited, 35 per cent, Ashaka Cement Plc, 58.61 per cent and Atlas Cement Company Limited, 100 per cent to Lafarge Wapco for a cash consideration of $200 million and the issuance of some 1.4 billion Lafarge Africa shares to the Lafarge Group.