The Lafarge Group has announced its intention to transfer all of its shares in its businesses in Nigeria and South Africa into Lafarge Cement WAPCO Nigeria Plc which will become Lafarge Africa Plc.

Lafarge Africa, owned 73% by Lafarge Group, will be strongly positioned to benefit from growth and development opportunities in Nigeria and Southern Africa and will remain listed on the Nigerian Stock Exchange. The new entity will have nationwide coverage in both Nigeria and South Africa, with cement capacity of about 12 million tonnes, as well as operations in aggregates, ready-mix and fly ash.

The strong operational track record and management skills within the combined businesses as well as continued support and expertise from Lafarge Group will position Lafarge Africa to offer a full range of value added solutions to meet customers’ needs.

Commenting on the transaction, chairperson of Lafarge WAPCO Olusegun Osunkeye said, “I am proud to be part of the creation of this leading African building materials platform. It will provide access to growth in two of the largest economies on the continent. It will mean that our shareholders are invested in a larger and more geographically diverse business; and it will contribute significantly to the economic growth of both our nations.”

Adding to this, Lafarge Group EVP Operations/Country CEO Nigeria, Guillaume Roux said that the move adds momentum to the company’s push for differentiation in order to deliver innovation that increases and improves its product portfolio. “Our objective is to bring more housing and ever better solutions to contribute to building better cities that are more beautiful, more compact, more connected and more durable.”

Under the proposed terms, Lafarge Group will transfer its direct and indirect shareholdings in Lafarge South Africa Holdings (Pty) Limited, United Cement Company of Nigeria Limited, Ashakacem Plc and Atlas Cement Company Limited to Lafarge WAPCO. The transaction will be concluded through a cash consideration of US$200m and the issuance of 1 402 575 984 Lafarge Africa shares to Lafarge Group.