Ashaka Cement PLC has finally been delisted from the Nigerian Stock Exchange, NSE.
In an explanatory statement released by the company, the company disclosed that Lafarge Africa acquired 1,312,444,260 shares being 58.61% of Ashaka Cement Plc (”AshakaCem”) from Lafarge SA.
The acquisition triggered a Mandatory Tender Offer (“MTO”) under the provisions of Section 132(1)(a) of the Investment & Securities Act (No. 29 of 2007), which was made by Lafarge Africa in December 2014. At the conclusion of the MTO, Lafarge Africa acquired an additional 534,144,592 shares of AshakaCem thus increasing its equity stake to 82.46% leaving Minority Shareholders holding 17.54%.
The company has announced its delisting thereby informing its shareholders that its shares will no longer be available for trading on The Nigerian Stock Exchange.
The company said it “envisaged that the delisted AshakaCem will continue its operations, as an unlisted company. The operations of the Company will continue to be domiciled in the present location in Ashaka, Gombe State, in recognition of its strategic importance to North-Eastern Nigerian and in recognition of and deference to the very cordial relationship with the host community”.
The company allayed the fears of its staff that the delisting exercise “will not have any impact on the existing contracts of employment”.
In its third quarter result, Lafarge disclosed that it made a net loss of over NGN 30 billion. The loss is the largest by any company quoted on the NSE.