BY Mary Ugbodaga
Lafarge Africa Plc says it has resolved to divest its 35 percent shareholding in Continental Blue Investment Ghana Limited (CBI), a company involved in development, financing and operation of a cement grinding plant in Ghana.
This is according to a notice sent to the Nigerian Stock Exchange (NSE) on Thursday.
The cement manufacturer held an emergency meeting with its board of directors on October 6, 2020, to discuss its investment in CBI.
The notice signed by Adewunmi Adole, Lafarge’s general counsel and company secretary, said the decision to sell-off its shares in the Ghanaian company was taken during an emergency meeting of Lafarge board of directors on Wednesday.
In the company’s 2019 annual report, Lafarge had said: “As at December 31, 2019, the carrying amount of the company’s investment in Continental Blue Investment (CBI) has been fully depleted, as the losses reported over the years exceeded the carrying amount of the investment”.
In July 2019, the cement company had sold off its South African subsidiary, Lafarge South Africa Holdings (LSAH).
It said the approval of the proposed sale of Lafarge South Africa by the shareholders will cut debts service obligation and curtail substantially financial charges which will have a positive impact on liquidity and the opportunity to expand its operations in Nigeria.
Lafarge said its South African unit was sold off at $316.28 million which was utilized to settle the entire principal ($293 million) and accrued interest to July 31, 2019, ($23.28 million) on the intercompany loan owed to Caricement B.V. (purchaser).
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