By Chukwuma Umeorah
Holcim Group, through its subsidiary Holderfin B.V., has finalised an agreement to sell its controlling stake in Lafarge Africa Plc to Huaxin Cement. The transaction, which grants Huaxin Cement an 83.81 per cent ownership in Lafarge Africa, is subject to regulatory approval and is expected to conclude in 2025.
The company made this disclosure in a notice on the Nigerian Exchange Group (NGX). According to the Company’s Secretary, Adewumi Alode, the agreement was reached during an emergency board meeting on November 30 where the board reviewed notices from the company’s largest shareholders, Caricement B.V. and Associated International Cement Limited (AICL).
The deal involves Huaxin subsidiaries, Hainan Huaxin Pan-Africa Investment Co. Limited and Huaxin (Hong Kong) International Holdings Limited. These entities will acquire full ownership of Caricement and Davis Peak Holdings Limited, which currently hold Lafarge’s shares.
Alode stated, “Following completion of this transaction, Lafarge Africa Plc will remain listed on NGX and, subject to regulatory approvals, Huaxin Cement intends to launch a mandatory takeover offer in compliance with applicable laws and regulations.”
Lafarge, the third-largest cement producer listed on the Exchange, posted a revenue of N479.50 billion in Q3 2024, up by 65.9 per cent from the corresponding period of 2023. Profit Before Tax (PBT) rose to N94.33 billion from N61.16 billion in Q3 2023. Its gross profit climbed to N237.77 billion while total assets grew by 15.9 per cent from the corresponding year to N810.24 billion, driven by strategic investments in plant and equipment.
Lafarge, with a cement production capacity of 10.5 million metric tons per annum, operates plants in Ogun, Gombe, and Cross River states. Its ready-mix operations in Lagos, Abuja, and Port Harcourt play a key role in Nigeria’s construction and urbanization. The company notes that the acquisition aligned with Huaxin Cement’s strategy to expand its global footprint, particularly in Sub-Saharan Africa, leveraging Lafarge’s extensive operations to bolster its presence in the region.