Swiss cement maker Holcim Group has reached an agreement to sell its stake in Nigeria based Lafarge Africa Plc (NGX: WAPCO) in a deal worth US$1 billion to China’s Huaxin Cement.
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In a statement released on Sunday, Holcim stated that the transaction is expected to close in 2025, subject to customary and regulatory approvals, without elaborating on the reason for the sale.
The shares of Holcim in Lafarge Africa Plc is held by subsidiaries of Holcim Limited, amounting to 83.81% as at 31 December, 2023. Holcim Limited is an international investor holding its shares in the names of its subsidiaries: AIC UK (27.77%) and CariCement BV (56.04%).
Reuters reported that the deal aligns with Holcim’s strategy to streamline its portfolio and focus on high-growth regions, including the coming spin-off of its North American business, which remains on track for a U.S listing in the first half of 2025.
In November last year Holcim said it had signed deals to sell its businesses in Uganda and Tanzania, saying they “advance our strategy to consolidate our leadership in core markets as the global leader in innovative and sustainable building solutions”.
The Board of Directors of Lafarge Africa Plc in an emergency meeting considered communications received from Lafarge’s largest shareholders, CariCement B.V and Associated International Cement Limited informing the Board of the following:
Caricement’s sole shareholder, Holderfin B.V, part of the Holcim Group, has reached agreement with Hainan Huaxin Pan-Africa Investment Co. Limited and Huaxin (Hong Kong) International Holdings Limited, part of Huaxin Cement, pursuant to which they will acquire respectively full
ownership of Caricement and a second entity, Davis Peak Holdings Limited, which will hold the shares held currently by AICL.
This was disclosed in a regulatory filing by the cement maker on the Nigerian Exchange on Sunday, 1st December, 2024.
Upon completion, the Huaxin Cement entities will hold a combined 83.81% shareholding in Lafarge Africa Plc. This transaction is subject to regulatory approvals and is expected to close in 2025.
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.
The deal to acquire Lafarge Africa Plc is the latest in a series of African acquisitions by China’s Huaxin Cement.
In 2021 it said it had agreed to buy two businesses that were part of Lafarge, which merged with Holcim in 2015: a 75% stake in Lafarge Zambia and all of Lafarge Cement Malawi. It also announced last year that it was buying South Africa’s Natal Portland Cement Company.
The issued and fully paid-up Share Capital of Lafarge Africa Plc as at 31 December 2023 was 16,107,795,721 ordinary shares of 50 kobo each. While Holcim Group’s subsidiaries held 83.81%, the remaining 16.19% of the issued shares were held by other individuals and institutions.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
