Shareholders of Lafarge Africa Plc on Wednesday approved a proposal to raise NGN140bn (US$442m) in new capital for the cement group, local media have reported.
The new capital raising will be undertaken through a rights issue, issuance of pre-allotted shares to existing shareholders proportionate to their shareholdings.
At the company’s AGM in Lagos, shareholders mandated the board of directors to raise up to NGN140bn with a general provision that allows the company to convert its indebtedness to equities.
The subscription to the rights issue is expected to take place beginning of 3Q17 and is expected to be finalised by October at the latest. LafargeHolcim, the majority core investor, has stated that it will subscribe to its rights by converting the existing debt into equity.