By Peter Egwuatu
Shareholders of Lafarge Africa Plc, yesterday, moved for the restructuring of its board amidst high debt profile recorded by the company in the financial year ended December 31, 2018.
However, the shareholders hailed the decision by its board to dispose its South Africa subsidiary, Lafarge South Africa Holdings Pty Limited, LSAH, that has not been turning in profit to the Group.
The shareholders who spoke at the 2019 AGM also decried the high operating cost, attributing it to bank’s loan servicing amongst others.
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Responding, the Chairman of the Board, Mr. Mobolaji Balogun, assured shareholders that the Board and Management will continue to drive improvements in results.
He said: “The proposal by Lafarge Africa to sell Lafarge South Africa Holding Limited (LSAH) to LafargeHolcim Group will impact on its performance next year. With the proceeds from the proposed sale, it is expected that Lafarge Africa’s shareholder loan as at July 31, 2019, will be completely paid off. The loan represents the only existing foreign currency loan in the books of the company.”
Managing Director of the company Mr. Michel Puchercos, appreciated the understanding showed by the shareholders in approving the Board’s proposals. He maintained that Management is determined to deliver on the trust expressed by the shareholders.