From Adesuwa Tsan, Abuja
The Senate Committee on Capital Market has summoned Lafarge Africa Plc to address concerns over its proposed divestment of an 83.8% majority stake in the cement company.
The Bureau of Public Enterprises (BPE) has assured investors that the 16.19% shareholding held by the Nigerian public remains unaffected.
The probe, initiated following a Senate resolution on March 27, stems from a motion by Senator Shuaib Salisu (APC, Ogun Central) regarding the alleged sale of Lafarge Africa Plc to Chinese investors, specifically Huaxin Cement Co., in a $1 billion deal expected to close in 2025, pending regulatory approvals.
The Senate expressed concerns about foreign dominance in the cement sector, citing risks to economic sovereignty and national security.
The committee held an interactive session with representatives from the Securities and Exchange Commission (SEC), BPE, and the Federal Competition and Consumer Protection Commission (FCCPC).
SEC Director General Emmanuel Agama, represented by Abdulkadir Abbas, clarified, “Holcim Group holds 83.81% of Lafarge Africa Plc’s issued share capital through wholly owned entities. As part of an internal restructuring, the 27.77% equity stake held by Associated International Cement Limited was transferred to Davis Peak Holdings Limited, another Holcim entity. There has been no change in the ultimate beneficial ownership.” He added that no formal filing for a sale to Chinese investors has been received by the SEC.
BPE’s Director of Post Transaction, Satura Aisha Bello, explained that the 83.8% stake under discussion belongs to Holcim Group, not the 16.19% held by Nigerian shareholders. She noted that Lafarge Africa, listed on the Nigerian Exchange (NGX), acquired 83% of three former government-owned cement companies in 2001 and 2002, leaving the public’s 16.19% stake untouched.
Despite these clarifications, the committee, chaired by Senator Osita Izunaso (APC, Imo West), resolved to summon Lafarge Africa for further details on the divestment. It also directed its clerk to request information from the Corporate Affairs Commission (CAC) on Lafarge’s memorandum and articles of association regarding shareholding divestments.