THE country’s largest cement and healthcare manufacturing companies are planning to raise N240 billion new capital to grow their businesses.
The two largest cement companies – Dangote Cement Plc and Lafarge Africa Plc – and two leading healthcare companies – Fidson Healthcare Plc and May & Baker Nigeria Plc – have launched the new capital raisers. They are expected to conclude the supplementary issue by the fourth quarter of the year.
Dangote Cement, Nigeria’s most capitalised quoted company and Africa’s largest cement producer, is raising N150 billion in debt capital.
The company has concluded the first tranche of the N150billion, raising N50 billion in new debt capital.Dangote Cement issued commercial papers of 180 days and 270 days’tenors with effective yields of 13.21 per cent and 13.96 per cent.
According to the company, the net proceeds from the deal would be used to finance capital expenditure, working capital and corporate purposes.
Lafarge Africa Board has also approved a right issue of up to N82 billion to reduce the company’s leverage as well as strengthen its profitability.
Earlier, Lafarge Africa shareholders approved a resolution authorising the company to raise more capital of up to N100 billion as the cement group continues to optimise its balance sheet.
Lafarge Cement shareholders mandated the Board to raise more capital through an offer of debt or equity or a combination of the two from local or international capital market. Last year, the cement company raised N131.6 billion from a rights issue, which was oversubscribed.
Fidson Healthcare is raising N4.5 billion new capital from new ordinary shares to its shareholders.
The Nigerian Stock Exchange (NSE) has approved the rights issue, paving the way for the company to open application list for the offer.
Fidson Healthcare will issue 900 million ordinary shares of 50 kobo each to shareholders at N5 per share. The rights issue will be pre-allotted on the basis of three new ordinary shares for every five ordinary shares held as at the close of business on July 5.Shareholders of Fidson Healthcare last year approved a plan to raise N6 billion to boost its working capital and support its expansion. Shareholders had authorised the board of directors of Fidson Healthcare to “raise further capital of up to N6 billion through an offer whether by way of public offering, rights issue, private and special placement of shares”.Shareholders also authorised the directors to absorb oversubscription and to convert existing loans due to any person from the company […]