Lafarge Africa Plc, indicated commitment to the timetable for its rights issues planned to be completed by the end of the fourth quarter (Q4) 2017, as it has submitted application on the proposed rights issues to the Nigerian Stock Exchange (NSE).
the NSE in its weekly market report for the week ended Friday 3rd November 2017 on the theme “proposed rights issue “revealed that Lafarge Africa Plc through its Stockbrokers; Pilot Securities Limited during the week, submitted an application for approval and listing of a Rights Issue of 3,097,653,023 Ordinary Shares of 50 Kobo each at N42.50 kobo per share on the basis of 5 new ordinary share for every 9 ordinary shares held.
The Qualification Date for the Rights Issue, according to the release, was Wednesday, 1st November 2017. Daily Times Nigeria recalls that the board of directors of Lafarge Africa Plc, on 26TH September 2017 held an extraordinary meeting and considered the terms of the firm’s new capital raising.
Shareholders of Lafarge Africa on 7th June 2017 at its Annual General Meeting in Lagos, endorsed the board of director’s proposal to raise new equity capital of N140 billion in a major move to enhance operations and take new business opportunities.
Lafarge Africa is raising the new equity fund through a rights issue, from only existing and qualified shareholders. Following shareholders’ approval given to the board, towards end of Q3 2017, precisely on 26th September 2017, the board met and endorsed the rights strategic steps, including terms of rights issue as it approved to raise N131.65 billion by way of rights issue at N42.50 naira per share, through the rights offer of 5 new shares for every 9 shares held by investors.
It noted that the rights price represents about 17.44 percent discount on Lafarge Africa’s closing price at sept N22, as it waits regulatory endorsement.
Lafarge Africa had planned to launch its rights issue later this month and finalise the offer by the fourth quarter. LafargeHolcim, which holds the majority equity stake of 72.59 per cent in Lafarge Africa Plc, has indicated it will subscribe fully to its rights.
LafargeHolcim will pick up its rights under a debt-for-equities deal that will see conversion of LafargeHolcim’s dollar-based loan to equities.
However, many Nigerian shareholders raised objections to the debt-for-equities deal, which they said could give the majority core investor undue advantage to increase its controlling equity stake in the company.
Chairman, Lafarge Africa Plc, Mr. Mobolaji Balogun, said decision of LafargeHolcim to convert existing loans into equity demonstrates the core investor’s continued belief in the Nigeria story, pointing out that the rights issue is the largest so far in the Nigerian capital market and the largest investment in a listed company by an investor.
He added that the recapitalization would help to reduce the group’s exposure to adverse foreign currency translation losses as experienced in 2016 following a 40 per cent depreciation of the Naira against the Dollar.
South Korea imposed unilateral sanctions on 18 North Koreans, on Monday, barring any financial transactions between those sanctioned and any South Koreans, as part of international efforts to dry up Pyongyang’s illegal cash flows.
All 18 individuals on whom the South Korean sanctions were imposed were directly affiliated to North Korean banks, according to an official government announcement by the finance minister uploaded on the Interior Ministry’s website.
“They are all people at North Korean financial institutions that have already been sanctioned by the UN,” a government official directly involved in the sanction development process said.
The official asked for anonymity as he was not authorised to speak to media.
“They’re high-ranking employees, who have been linked to North Korea’s nuclear and missile development programme as well as the North’s foreign exchange procurement efforts.”
“We aim to encourage people to avoid problematic transactions with North Korea (through these sanctions) and to exercise caution with North Korea-related transactions in general,” said Unification Ministry spokesman, Baek Tae-hyun, in a regular news conference.
“We expect this will contribute to blocking North Korea’s main sources of foreign exchange and its developing of weapons of mass destruction.’’
The announcement came a day ahead of U.S. President Donald Trump’s visit to South Korea as part of his 12-day Asia tour, where he is expected to discuss North Korea’s nuclear and missile programme at length with government officials here.
When asked on the timing of the announcement, government officials denied it was tied to Trump’s visit to Seoul.
In spite of the announcement, the sanctions are expected to have little impact on North Korea’s illegal activities to fund its weapons programme as all trade and financial exchanges have been barred since May 2010 following the torpedoing of a South Korean warship by North Korea.
Those named were: Kang Min, Ko Man, Ku Hyong, Kim Kyong Il, Kim Chol, Kim Ho, Kim Man, Kim Chol, Ri Song, Ri Song, Ri Hwan and Mun Hwan.
Others are Park Mun Il, Pak Nam, Pang Nam, Pae Uk, Chu Hyok and Choe Min.
According to the announcement 14 of those named were based in China, two were based in Libya while the remaining two were based in Russia.
The institutions the 18 were affiliated with were Korea Daesong Bank, Foreign Trade Bank of the Democratic People’s Republic of Korea, Korea United Development Bank, Bank of East Land and ILSIM International Bank.
As of the announcement on Monday, South Korea had North Korea sanctions imposed on 97 individuals. (NAN)
