Lafarge Africa Hits 52-Week High Amid Huaxin Deal Excitement
Lafarge Africa Plc is making waves on the Nigerian Exchange Limited (NGX), with its stock hitting a 52-week high of N70.15 on Tuesday, December 3, 2024. This impressive rally, fueled by a major acquisition deal, saw the stock gain N6.35 (9.95%) in a single trading day.
Key Highlights from the Huaxin Deal
1️⃣ $1 Billion Acquisition
• Swiss company Holcim Group is set to sell its 83.81% controlling stake in Lafarge Africa Plc to Huaxin Cement Company Limited for $1 billion.
• Huaxin Cement will pay $838.1 million for 13.5 billion shares, translating to a Value Per Share (VPS) of N102.44, a 60.56% premium over Lafarge’s closing price on December 2.
2️⃣ Mandatory Takeover Offer (MTO)
• Following the acquisition, Huaxin plans to launch an MTO for minority shareholders, offering them a chance to sell their shares at a significant premium.
3️⃣ Strategic Market Expansion
• Analysts at Meristem Research anticipate that this acquisition will enhance Lafarge’s operational efficiency, drive capacity expansion, and position it strategically in Nigeria and other African markets.
4️⃣ Future Projections
• Meristem analysts predict Lafarge’s stock could reach N100 per share, reflecting growing investor confidence.
Market Impact
• Increased Valuation: The projected market capitalization post-acquisition is N1.65 trillion, significantly higher than the current N1.03 trillion.
• Positive Outlook: The deal underscores Huaxin’s confidence in Lafarge’s value as a strategic asset in Africa.
Broader Market Update
Despite Lafarge’s rally, Nigeria’s equities market recorded its first negative close in December, with the NGX All-Share Index dipping 0.03%. Declines in stocks like Aradel contributed to the loss, but Lafarge’s performance remained a standout.
Analyst Insight
“This acquisition not only highlights Lafarge’s intrinsic value but also offers investors a chance to realize gains amid bullish sentiment,” said Meristem analysts.
What’s your take on Lafarge’s performance and the Huaxin deal? Share your thoughts below!
Lafarge Africa Plc is making waves on the Nigerian Exchange Limited (NGX), with its stock hitting a 52-week high of N70.15 on Tuesday, December 3, 2024. This impressive rally, fueled by a major acquisition deal, saw the stock gain N6.35 (9.95%) in a single trading day.
Key Highlights from the Huaxin Deal
1️⃣ $1 Billion Acquisition
• Swiss company Holcim Group is set to sell its 83.81% controlling stake in Lafarge Africa Plc to Huaxin Cement Company Limited for $1 billion.
• Huaxin Cement will pay $838.1 million for 13.5 billion shares, translating to a Value Per Share (VPS) of N102.44, a 60.56% premium over Lafarge’s closing price on December 2.
2️⃣ Mandatory Takeover Offer (MTO)
• Following the acquisition, Huaxin plans to launch an MTO for minority shareholders, offering them a chance to sell their shares at a significant premium.
3️⃣ Strategic Market Expansion
• Analysts at Meristem Research anticipate that this acquisition will enhance Lafarge’s operational efficiency, drive capacity expansion, and position it strategically in Nigeria and other African markets.
4️⃣ Future Projections
• Meristem analysts predict Lafarge’s stock could reach N100 per share, reflecting growing investor confidence.
Market Impact
• Increased Valuation: The projected market capitalization post-acquisition is N1.65 trillion, significantly higher than the current N1.03 trillion.
• Positive Outlook: The deal underscores Huaxin’s confidence in Lafarge’s value as a strategic asset in Africa.
Broader Market Update
Despite Lafarge’s rally, Nigeria’s equities market recorded its first negative close in December, with the NGX All-Share Index dipping 0.03%. Declines in stocks like Aradel contributed to the loss, but Lafarge’s performance remained a standout.
Analyst Insight
“This acquisition not only highlights Lafarge’s intrinsic value but also offers investors a chance to realize gains amid bullish sentiment,” said Meristem analysts.
What’s your take on Lafarge’s performance and the Huaxin deal? Share your thoughts below!