Lafarge Stake Transfer: Senate Pledges Support for Genuine Foreign Investors

–         As Firm Assures Stakeholders of Equity, Stability

Sunday Aborisade in Abuja 

The Chairman of the Senate Committee on Capital Market, Senator Osita Izunaso, has said the upper legislative chamber of the National Assembly was not opposed foreign investment in Nigeria.

Izunaso spoke against the backdrop that a Chinese firm had taken over the highest stake at the Lafarge Africa, a cement firm.

The Senate had summoned Lafarge to probe the announcement of Holcim’s plan to divest its 83.81% indirect stake in Lafarge Africa last week.

Izunaso said: “While we are still understanding the broader implications of the deal, we are not opposed to foreign investments that follow due process and contribute meaningfully to national development.

“We are not against foreign investors, our priority is to ensure that Nigeria’s strategic interests, workers’ rights, and local investors are protected.”

The Senate’s final report on the matter, Izunaso said, is expected in the coming weeks as the committee continues consultations with regulatory agencies and stakeholders.

However, the cement firm has restated its commitment to Nigerians that the offshore transfer of shareholding from Swiss multinational, Holcim to China’s Huaxin Cement will bring substantial benefits to the Nigerian economy.

The company in a statement on Sunday, by its Head, Corporate Communications, Ginikanwa Frank-Durugbor, addressed concerns over transparency, national sovereignty, and job losses in light of the transaction. 

Lafarge Africa’s CEO, according to Lolu Alade-Akinyemi at the hearing, emphasized that the transaction is an entirely offshore realignment.

He said Holcim is transferring its 83.81% ownership in Lafarge Africa via an indirect transfer of foreign holding companies to Huaxin Cement. 

He said: “Crucially, Holcim will retain a significant 41.81% interest in Huaxin, positioning it as the largest shareholder with ongoing governance rights and collaborative efforts.

“Our valued Nigerian public investors continue to hold 16.19% shareholding in Lafarge Africa during this transaction. 

“This realignment is a part of Holcim’s global portfolio strategy, and Holcim will continue to hold a significant beneficial interest in Lafarge Africa via its stake in Huaxin.”

The company stressed that this transition does not represent an actual change to Lafarge Africa’s fundamental character, which has been foreign-owned for over two decades – a proof to Nigeria’s attractiveness for foreign investment.