Lafarge Africa Plc has increased its stake in the United Cement Company of Nigeria, information made available by the Nigerian Stock Exchange showed. Lafarge Africa had in March this year announced that Nigerian Cement Holdings B.V. (NCH), a 50% affiliate of the company, had completed the acquisition of the first 15% tranche stake in UNICEM from Flour Mills of Nigeria Plc.
Nigerian Cement Holdings B.V. operates as a subsidiary of Egyptian Cement Holding B.V.
The acquisition had increased NCH’s stake in UNICEM to 85%. The Exchange said Lafarge Africa notified it last week that further to the earlier announcement, NCH had completed the acquisition of the second and final tranche of 15% of equity interest of Flour Mills of Nigeria in UNICEM.
“Accordingly, NCH now owns 100 per cent of UNICEM and, consequently, Lafarge Africa Plc now owns 50 per cent of the equity of UNICEM,” the Exchange said in a report.
The Exchange said Lafarge Africa stated in the notice that UNICEM’s operational office was located in Calabar and its manufacturing plant in Mfamosing, Cross Rivers State.
“It currently has a cement production capacity of 2.5 metric tonnes per annum and is developing a second production line of 2.5Mtpa. The second production line is targeted to be commissioned in 2016 to bring UNICEM’s total production capacity to 5.0Mtpa,” the notice said.
With Lafarge Africa owning a 50 per cent stake in UNICEM now, it is expected that its output will increase by 2.5Mtpa.
The board of Lafarge Africa Plc had in November 2014 approved the initial agreement by NCH to buy out minority stake in UNICEM and make the Calabar-based cement company a wholly-owned subsidiary of NCH. Regulatory filing obtained from the Exchange at the time had shown that the acquisition was expected to be fully consummated on or before February 2016. NCH had earlier that month entered into an agreement with Flour Mills of Nigeria, defining a roadmap to the purchase of Flour Mills’ 30 per cent investment in Unicem.
The transaction had been priced within a range of between N47bn and N55bn, depending primarily on the effective dates of payment and prevailing dollar-Naira exchange.