Ashaka Cement, subsidiary of Lafarge Africa which is also the African branch of global cement producer Lafarge/Holcim decided to voluntarily delist from the Nigerian Stock Exchange. The firm’s board took the decision because its free float (15.03%) is below the actual standard of the stock market, 20%.

The board of directors says the free float liquidity on the NSE was no more much liquid. “Over the past five years, there was little or no trading activity with only 0.2% of the shares being traded. Neither the company nor any shareholders are benefiting from the continued listing,” Ashaka said in a statement published on the NSE website.  

Lafarge Africa currently holds 84.97% of Ashaka Cement. It offered minority shareholders of AshakaCem an exchange of 57 of shares for 202 AshakaCem shares held as at the date of the special resolution approving the voluntary delisting. In addition, Lafarge Africa said it would pay a cash consideration of N2 per share to every shareholder that agrees to exchange its shares. However, shareholders who are not interested by the offer are free to sell their shares to other investors.

Idriss Linge