By Nse Anthony-Uko
(Sundiata Finance) — The board of directors of Lafarge Africa said it has approved the commencement of a merger with United Cement Company (Unicem) and Atlas Cement Company (Atlas).
The company made this known in a press release signed by its secretary, Mrs. Edith Onwuchekwa, published on the website of the Nigerian Stock Exchange (NSE).
According to the company, the board has approved to enter into any agreement and so all that is necessary to negotiate and implement the merger among Unicem, Atlas and Lafarge.
The company added that it seek the approval of the Securities and Exchange Commission and all other relevant regulatory bodies in furtherance of the implementation of the meger.
Lafarge owns 100 per cent stake in both Unicem and Atlas, with the Atlas holding carried at cost at a valuation of about N2 billion.
Recently, the country chief executive officer, Lafarge Africa, Michel Puchercos, said that the acquisition of Unicem in 2016 was in line with the company’s capacity expansion plans.
Puchercos noted that the doubling of the production capacity of the Mfamosing plant in Calabar to five million metric tonnes per annum and had contributed significantly to Lafarge Africa’s capacity and footprint in Nigeria, saying “It has provided an opportunity to increase our share of the cement market in the south east and south regions, and has begun to impact positively on the financial results of the company.”
Lafarge Africa recently concluded the merger and de-listing of Ashaka Cement, which it acquired a few years back in a cash plus equity deal valued at over N58 billion.