The approval was given at the Extraordinary General Meeting (EGM) held in Abuja on Monday.
Speaking at the EGM in Abuja Michel Puchercos, CEO of Lafarge Africa said: “We remain committed to Ashaka in good times and in bad times because we have a long-term view of our investments. Ashaka cement as a brand has for decades become synonymous with housing and infrastructural solutions in the entire north. We shall maintain that legacy of quality even in the face of temporary setbacks.”
According to a statement by the company, minority shareholders would receive 57 Lafarge Africa shares for every 202 AshakaCem shares.
“This makes AshakaCem a fully-owned subsidiary of Lafarge Africa and offers its shareholders the window to liquidate their investments following the delisting of the Gombe-based cement maker from the trading floor of the Nigeria Stock Exchange in July 2017,” it said.
According to Bruno Bayet, Chief Financial Officer of Lafarge Africa said, “The minority shareholders of Ashaka now have the opportunity to be part of Lafarge Africa with total installed production capacity of over 14 million metric tonnes per annum and strong growth prospects.”
For the 9-month period ended in September 2017, Lafarge Africa reported a four-fold increase in operating margins. Operating EBITDA grew to N41.7 billion while net sales increased by 39 per cent to N223.7b.
Despite lower cement demand and gas shortages the company’s turnaround plan and energy strategy delivered EBITDA margins of 30 per cent.
Though now a 100 per cent subsidiary of Lafarge Africa, Ashaka cement will have its own board of directors. Also, sale of cement products under the widely known AshakaCem brand will continue in the north.
and then