Lafarge Africa soars 21% in three days on Holcim-Huaxin deal
Lafarge Africa Plc has seen its share price balloon by 20.91 percent in three days after the announcement by its parent Holcim of a deal to sell its stake to China’s Huaxin Cement.
Swiss-based cement giant Holcim had announced on Sunday that it agreed to sell its 83.81 percent in Lafarge Africa to the Chinese manufacturer for $1 billion.
On Monday, Lafarge Africa joined the exclusive club of listed companies with at least N1trn market value on the Nigerian Exchange as its share price jumped by 10 percent.
The company’s market capitalisation stood at N1.13 trillion on Wednesday, up from N934.25 billion last Friday, while its share price jumped to N70.15 from N58.
Lafarge Africa said in a statement on Monday that Huaxin Cement entities have agreed to acquire the 83.81% shareholding owned by Holcim Group, which merged with Lafarge Group in 2014.
“This transaction is subject to regulatory approvals and is expected to close in 2025,” it said. “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.”
