By Nkiruka Nnorom

LAFARGE Africa Plc has opened application for N89.12 billion rights issues to its existing shareholders.

The company is offering 7.43 billion ordinary shares of 50 kobo each at N12 per share on the basis of six new shares for every seven ordinary shares held by shareholders as at the qualification date (December 4, 2018).

The rights price represents a discount of 10.45 percent on the company’s traded closing price as at Monday, December 3, 2018.Application for the offer opened Monday, December 17, 2018 and will close on Wednesday, January 23, 2019. Chairman, Lafarge Africa Plc, Mr Mobolaji Balogun, explained that the additional capital to be raised will further help to deleverage the company’s balance sheet and provide head room for the expansion of its business.

He said the company foresees a stable pricing environment and favourable economic conditions in its Nigeria market, while its South Africa operations are undergoing a turnaround plan.

Chief Executive Officer, Lafarge Africa Plc, Mr. Michel Puchercos, said the company’s refinancing plan is aimed at preparing for future development in Nigeria by improving the company’s leverage as well as strengthening its profitability. A peep into the company’s nine month financial statement for the period ended September 30 2018, showed that revenue increased by 4.9 percent to N234 billion from N223 billion in 2017.

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However, it recorded loss before tax of N14.3 billion in 2018, as against a profit before tax of N1 billion in the corresponding period in 2017. Loss after tax stood at N10.3 billion as against a profit after tax of N937 billion made in the corresponding period in 2017.