By Audrey Lotechukwu
THUR 21 JAN, 2021-theGBJournal- Lafarge Africa Plc, cement giant said it is relinquishing its 35% shareholding in Continental Blue Investment Ghana Limited (CBI Ghana).
The company said today that the decision to divest follows an emergency meeting of the Board of Lafarge Africa Plc held Wednesday, 20th January 2021 where the Board resolved to notifies the NSE of its decision.
It is not clear the reason for the divestment but the company has long signalled its intention to focus on its Nigeria operations and continued gains from the deleveraging of its balance sheet following the sale of the loss-making South African operation at an estimated $312.2 million last July.
Lafarge gross margin declined to 36.9% (Q3-19: 42.0%) in Q3-20 due to the rise in the variable cost component (+61.2% y/y) of COGS. Management attributed this to higher naira equivalent costs on USD denominated cost items, namely gas contracts, spare parts and strategic raw materials.
It currently has an installed cement production capacity of 10.5MTPA with plants in Ewekoro and Sagamu in the South West, Mfamosing in the South-South and Ashaka in the North East of Nigeria.
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