The board of Lafarge Africa Plc has made a decision to sell off the company’s stake in Continental Blue Investment (CBI) Ghana Limited.
Lafarge Africa is a major player in the Nigerian cement market, which is also the major market for the product on the African continent.
The cement maker has a 35 per cent stake in CBI Ghana, a company involved in the manufacturing and processing of non-precious minerals and building material in the West African nation.
Last October, Lafarge Africa had said it was planning to hold an emergency meeting to discuss its joint venture with CBI Ghana but nothing was heard of the meeting afterwards.
On Wednesday, January 20, 2021, the “emergency meeting” finally took place and the firm informed the investing community that it has been agreed that the divestment from CBI Ghana should go ahead.
“Pursuant to the emergency meeting of the board of Lafarge Africa held [on] Wednesday, January 20, 2021, the board resolved and hereby notifies the Nigerian Stock Exchange (NSE) of its decision to divest its 35 per cent shareholding in Continental Blue Investment Ghana Limited,” a notice signed by Mrs Adewunmi Alode, the General Counsel/Company Secretary, disclosed.
Business Post gathered that CBI, which grinds cement, is not contributing positively to the numbers of the group.
“As at December 31, 2019, the carrying amount of the company’s investment in CBI Ghana has been fully depleted, as the losses reported over the years exceeded the carrying amount of the investment,” the financial results of Lafarge Africa pointed out.
