LA FARGE AFRICA TO RAISE N89BN BY RIGHTS ISSUE

Nigeria's pioneer cement manufacturer, La Farge Africa is soon to try to raise N89.21bn through a rights issue.

According to company Secretary, Adewunmi Alode in a formal notice to the Nigerian Stock Exchange on Tuesday, December 4, 2018; the rights offer has been approved by the Board of Directors of the company.

This approval was sequel to resolution passed by shareholders at the Extraordinary General Meeting held on September 25 2018.

The rights, adds Alode, will be issued 6 new shares for every 7 held by shareholders currently and the new shares will be issued at N12 per share to raise the new capital.

That means that shareholders will pay N72 for each set of the 6 new shares they will receive in addition to 7 they already hold.

At the price, he said, the offer was about 10.45% discount on the quoted price by Monday December 3, 2018.

However, before hitting the market, the rights issue still has some regulatory hurdles to scale.

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