As BPE Says 16.19% Shares Held by Nigerians Intact

By Henry Umoru

ABUJA – The Senate has summoned Lafarge Africa Plc over its planned divestment of the 83.8% majority shares it controls in the cement industry.

The Senate took this action through its Committee on Capital Market, led by Senator Osita Izunaso (APC, Imo West).

Senator Izunaso resolved to summon Lafarge Africa Plc regarding the planned divestment of its majority shareholding. He also directed the committee clerk to write the Corporate Affairs Commission (CAC) for clarification on what the company’s memo and articles say about divesting its shares.

Meanwhile, the Bureau of Public Enterprises (BPE) reassured the Senate that the 16.19% share held by Nigerians in Lafarge Africa remains intact.

Before summoning Lafarge Africa, the committee held an interactive session with the management of the Securities and Exchange Commission (SEC), BPE, and the Federal Competition and Consumer Protection Commission (FCCPC) to discuss the alleged planned sale of Lafarge Africa Plc to Chinese investors.

In his submission before the committee, the Director-General of SEC, Emmanuel Agama (represented by Abdulkafir Abbas, Director, Securities and Investment Services), stated that SEC had not received any formal filing regarding the proposed divestment of the majority shareholding in Lafarge Africa Plc.

Agama explained that SEC had been notified of an internal restructuring within the Holcim Group, the majority shareholder in Lafarge Africa. He said, “Holcim Group holds 83.81% of Lafarge Africa Plc’s issued share capital through the following wholly owned entities:”

“As part of the internal restructuring, the 27.77% equity stake held by Associated International Cement Limited was transferred to another Holcim-owned entity, Davis Peak Holdings Limited. There has been no change in the ultimate beneficial ownership of the shares as a result of this transaction.”

Agama further clarified that SEC had not received any formal filing regarding a proposed sale of Lafarge Africa Plc to Chinese investors.

On her part, Satura Aisha Bello, a representative of BPE and Director, Post Transaction, told the committee that the shares Lafarge Africa Plc intends to divest belong to the company and not the 16.19% share held by Nigerians.

She further explained that Lafarge, quoted on the stock exchange, holds 83% of the total shares in the three federal government-owned cement companies that were sold to it in 2001 and 2002. She confirmed that the 16.19% share allocated to Nigerians has not been tampered with.