Lafarge completes sale of South African subsidiary to Caricement B.V

The proceeds will be used to offset a related-party loan, amounting to $293 million and an accrued interest of $23.29 million on the Inter-Company loan owed to Caricement BV (Purchaser).

Adewunmi Alode, General Counsel & Company Secretary at Lafarge Africa Plc, made this known in a corporate filing on Wednesday, July 31.

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“Following the approval of the sale of Lafarge South Africa Holdings (“LSAH”) by shareholders at the 60th Annual General Meeting of the Company held on Monday, 22nd July, 2019, a transaction closing meeting was held on Wednesday 31st July, 2019 at which parties to the transaction exchanged documents as specified in the Share Purchase Agreement.

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“The closing meeting, therefore, brings to a conclusion the divestment of Lafarge Africa Plc (“the Company”) from LSAH.”

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The statement added that the shareholders agreed on the sale price and the settlement of existing debts.

“As approved by shareholders at the last Annual General Meeting, the agreed sale price of US$316,289,060.55 was utilized to settle the entire principal (US$ 293,000,000) and accrued interest to 31st July 2019 (US$23,289,060.55) on the Inter-Company loan owed to Caricement BV (Purchaser).

“With this set-off, the Company does not have any foreign currency debt on its books with the only debt being the N33.6 billion corporate bond due for redemption in June 2021 and N16.0 billion on Central Bank Of Nigeria Intervention loans through the Bank of Industry,” Lafarge said.

Lafarge Africa Plc sees the sale of South Africa assets as a move towards company‟s profitability, through positive cash flow generation, reinvest in (and expand) operations in existing plants.