Senate Summons Lafarge Africa Over Planned Divestment Of 83.8% Shares

The Senate, through its Committee on Capital Market, on Wednesday summoned Lafarge Africa Plc over the planned divestment of the 83.8% majority shares it controls in the cement industry.

This comes as the Bureau of Public Enterprises (BPE) assured the Senate that the 16.19% shares held by Nigerian investors in Lafarge remain intact.

Before issuing the summons—based on a Senate resolution passed on March 27, 2025—the committee held an interactive session with the management of the Securities and Exchange Commission (SEC), the BPE, and the Federal Competition and Consumer Protection Commission (FCCPC) concerning the alleged planned sale of Lafarge Africa Plc to Chinese investors.

In his submission to the committee, the Director General of SEC, Mr. Emmanuel Agama, represented by the Director of Securities and Investment Services, Mr. Abdulkafir Abbas, said the SEC had not received any formal filing regarding the proposed divestment of majority shareholding in Lafarge Africa Plc.

However, he explained that the Commission had been notified of an internal restructuring involving Holcim Group, the majority shareholder in Lafarge Africa Plc.

“Holcim Group holds 83.81% of Lafarge Africa Plc’s issued share capital through the following wholly owned entities:

“As part of the internal restructuring, the 27.77% 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.

Representing the BPE, Director of Post-Transaction Management, Mrs. Satura Aisha Bello, told the committee that the shares Lafarge Africa Plc plans to divest belong solely to the company and do not affect the 16.19% shares held by Nigerian investors.

She further explained that Lafarge, which is quoted on the Nigerian Stock Exchange, holds 83% of the total shares of the three federal government-owned cement companies sold to it in 2001 and 2002, and that there has been no tampering with the 16.19% shares reserved for the Nigerian public.

Nonetheless, the committee, chaired by Senator Osita Izunaso (APC, Imo West), resolved to summon Lafarge Africa Plc over the planned divestment of its majority shareholding.

It also directed its Clerk to write to the Corporate Affairs Commission (CAC) to obtain the company’s memorandum and articles of association regarding shareholding divestment provisions.