Lafarge Africa Plc on Thursday said that the ongoing rights issue of N131.65 billion when concluded would strengthen the company’s balance sheet for enhanced return.
Mr Michel Puchercos, Lafarge Africa Group Managing Director and Chief Executive Officer, said this at the company’s facts behind the offer at the Nigerian Stock Exchange (NSE) in Lagos.
Puchercos said that the company embarked on the rights issue to strengthen balance sheet and financing structure in order to increase market share.
He said that the net proceeds of the rights issue would also be used to refinance a portion of the company’s foreign currency denominated shareholder loans by way of a debt-to-equity conversion.
According to him, the offer will enable the company to finance working capital requirements and expansion of operations.
Puchercos added that the offer would provide the company the opportunity to prepare and position for future capacity expansion.
He stated that the rights issue would present shareholders the opportunity to increase their investments in the company.
The managing director urged the shareholders to embrace the offer to be part of the company’s success story.
The company is offering to the existing shareholders rights issue of 3.097 billion ordinary shares of 50k at N42.50 per share on the basis of five new ordinary shares for every nine shares already held.
The offer being packaged by Chapel Hill Denham as lead issuing house and Standard Chartered as joint issuing house opened on Nov. 24 to close on Dec. 15.
Earlier, Mr Oscar Onyema, NSE Chief Executive Officer, commended the company for coming to explain to the investing public and brokers the reasons behind the offer.
Onyema who was represented by Mr Bola Adeeko, NSE Head, Corporate Services Division, said that the exchange was pleased that the company leverage on its platform to excite the market on the rights issue.
He described the rights issue as the largest offer in the market in the recent period.
Onyema who said that the company had entered new phase of transformation with the rights issue urged shareholders to use the opportunity to increase their stake.