The Senate Committee on Capital Market, on Wednesday, summoned Lafarge Africa Plc over planned divestment of 83.8 per cent majority shares it controls in the cement industry.
This is as the Bureau of Public Enterprises (BPE), assured the Senate that the 16.19 per cent share held by the Nigerian public in Lafarge is intact.
Chairman of the Committee, Sen. Osita Izunaso gave the summon in Abuja during an interactive session with BPE, Securities and Exchange Commission (SEC) and Federal Competition and Consumer Protection Commission ( FCCPC).
Izunaso noted that the Senate had in March, delivered a motion urging the Federal Government to halt the sale of Lafarge cement plc to Chinese investors in the interest of national security.
“The Senate therefore mandated the Committee on Capital Market to engage SEC, BPE and the Federal Competition and Consumer Protection Commission to ensure compliance with the Senate resolution on their own subject matter.
“So, based on this, we have invited all of you for an interactive session. It is after this session that you can see that we didn’t invite a Chinese company”.
In his submission, Director-General, SEC, Dr Emomotimi Agama said SEC has not received any formal filing regarding the proposed divestment of majority shareholding in Lafarge Africa Plc .
Agama was represented by Director, Securities and Investment Services, Abdulkafir Abbas.
He, however, explained that the SEC was notified of an internal restructuring involving Holcim Group, the majority shareholder in Lafarge Africa Plc.
“Holcim Group holds 83.81 per cent of Lafarge Africa Plc issued share capital through the following wholly owned entities:
“As part of the internal restructuring, the 27.77 per cent equity stake held by Associated International Cement Limited was transferred to another Holcim-owned entity, Davis Peak Holdings Limited.
“There has been no change in the ultimate beneficial ownership of the shares as a result of this transaction.
“In light of the foregoing, the Commission wishes to clarify that no formal filing has been made with respect to any proposed sale of Lafarge Africa Plc to Chinese investors”, he said .
Representative of BPE, Aisha Bello, in her capacity as Director, Post Transaction, told the committee that the Share Lafarge Africa Plc wants to divest what belongs to the company and not the 16.19 per cent share held by Nigerians.
She explained further that what Lafarge quoted on the stock exchange, holds 83 per cent of the total shares of the three federal government owned cement companies sold to it in 2001 and 2002.
“And this has not in any way tampered with the 16.19 per cent share meant for Nigerians”.
