Lafarge Africa To Divest Holdings In Ghanaian Subsidiary

Nigeria’s second largest cement producer, Lafarge Africa Plc, has decided to divest 35 per cent of its shares in Continental Blue Investment Ghana Limited.

The company made the disclosure on Thursday in a statement on the Nigerian Stock Exchange.

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The board of the company arrived at the decision on Wednesday, the cement manufacturer said.

Lafarge said, “Pursuant to the emergency meeting of the Board of Lafarge Africa Plc, the Board resolved and hereby notifies the Nigerian Stock Exchange of its decision to divest its 35 per cent shareholding in
Continental Blue Investment Ghana Limited.”

As at December 31, 2019, Lafarge said the carrying amount of the company’s investment in CBI has been fully depleted.

According to Lafarge, the losses reported by CBI over the years exceeded the carrying amount of the investment.

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In 2020, the company disclosed in September that it had loaned $3.85m to Continental Blue Investment in two tranches in October, 2016 and December 2016 for the development of cement grinding plant.

Lafarge added, “The loan was given at an interest rate and the loan is expected to be repaid within a period of seven years and eight years respectively with a moratorium period of two years from draw down date on October 6, 2016 and December 28, 2016 respectively.”

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