Lafarge Africa Hits 52-Week High on Holcim, Xuaxin $1bn Deal
Equities investors rushed to acquire more of Lafarge Africa’s (Ticker: WAPCO) shares following notice of the acquisition of the entire Holcim’s interest in the company.
Trading now at a 52-week high in the equities market, the cement company share price rose by 10% to N63.80 at the beginning of the trading week from N58 on Friday.
The sudden demand for the cement company shares was triggered by the expectation of a mandatory offer to minority shareholders. Lafarge Africa Plc market has rose sharply to N1.027 trillion for the first time in 12 months.
In a regulatory filing, Lafarge Africa said Swiss building materials company Holcim Group made move to exit the Nigerian market by selling its controlling stake in Lafarge Africa Plc to Chinese corporation Huaxin Cement for $1 billion.
Holcim currently holds its shares in WAPCO through two subsidiaries, Caricement B.V. and Associated International Cement Limited (AICL), which own 56.04% and 27.77%, respectively.
According to regulatory filing, Holcim owns an 83.81% stake in Lafarge Africa. Huaxin Cement is buying the entire shares through its subsidiaries, Hainan Huaxin Pan-Africa Investment Co. Limited and Huaxin (Hong Kong) International Holdings Limited.
The deal is expected to close in 2025, and Xuaxin has indicated plan to delist Lafarge Africa from the Nigerian Exchange by marking a mandatory takeover offer to minority shareholders.
The plan has triggered significant buying interest as some analysts estimate N103 as the minimum offer price from Xuaxin to be able to delist the cement company. #Lafarge Africa Hits 52-Week on Holcim, Xuaxin $1bn Deal#
