Lafarge Africa Plc (NSE Ticker: WAPCO) notified the Nigerian Stock Exchange of an emergency meeting of its Board of Directors. The meeting was to be held today, 6th October 2020 to discuss the Company’s investment in Continental Blue Investment Limited.
WAPCO has a 35% interest in Continental Blue Investment (CBI), a company involved in development, financing and operation of a cement grinding plant in Ghana.
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The group classifies its interest in CBI as a joint venture, in accordance with the agreement under which CBI was established.
As at 31 December 2019 the carrying amount of the Company’s investment in CBI has been fully depleted, as the losses reported over the years exceeded the carrying amount of the investment.
The summarised statement of financial position of Continental Blue Investment Ghana, as at 31 December, 2020 shows the Group’s carrying amount of the investment/share of net liabilities (35%) was minus N375.613 million.
The summarised statement of comprehensive income showed that WAPCO’s recognised share of loss was minus N98.993 million.
The Board of Directors might move to separate this lose making venture in Ghana from its profitable operations in Nigeria, just as they did with their lose making South Africa operations.
On May 31 2019, Lafarge Africa signed an agreement with Caricement for divestment of its entire holding in Lafarge South Africa for $317 million.
Lafarge Africa PLC (Lafarge Africa) was incorporated in Nigeria on 26 February, 1959 and commenced business on 10 January 1961.
The Company formerly known as Lafarge Cement WAPCO Nigeria Plc changed its name after a special resolution was passed by the shareholders at an Annual General Meeting held on Wednesday 9 July 2014.
The change of name became effective with the acquisition of shares in Lafarge South Africa Holdings (Proprietary) Limited (LSAH), United Cement Company of Nigeria Limited (UNICEM), AshakaCem PLC (AshakaCem) and Atlas Cement Company Limited (Atlas).
The Company’s corporate head office is situated at 27B Gerrard Road, Ikoyi, Lagos which is same as the registered office.
Lafarge Africa is in the business of manufacturing and marketing of cement and other cementitious products such as Ready-Mix Concrete, Aggregates, Fly-Ash etc.
On July 15, 2016, Lafarge S.A. France and Holcim Limited, Switzerland two large global players merged to form LafargeHolcim Group based in Zurich, Switzerland. Consequently Lafarge Africa is now a subsidiary company of Lafarge Holcim