By Ruth Olurounbi
Lafarge Africa is moving foward on plans to strengthen the company by issuing a N90 billion rights issue after securing an approval from its shareholders on Tuesday at an extra ordinary meeting general Meeting held in Lagos.
“The additional capital to be raised will further help to deleverage the company’s balance sheet and provide head room for the expansion of our business,” Mobolaji Balogun, Chairman of the Board of Directors said.
The company will also restructure its outstanding short term $315 million shareholder loans, as it
forecasts a stable pricing environment and favourable economic conditions in its Nigeria market.
Company CEO Michel Puchercos says the refinancing plan, “aimed at preparing for future development in Nigeria, improving the company’s leverage as well as strengthen its profitability.”