Recently, Holcim announced that it had completed the divestiture of its Nigerian business, selling all 83.81% of its shares in Lafarge Africa Limited to Huaxin Cement at an equity value of US $1 billion, and the transaction price was determined before the dividend adjustment. At the same time, Huaxin Cement has also announced the completion of equity delivery on August 29, 2025, and has paid the transaction consideration of US $773.86 million after the customary downward adjustment according to the value impairment clause of the Equity Acquisition Agreement. Lafarge Africa Limited has become an indirect wholly-owned subsidiary of Huaxin Cement.
However, the market value of Lafarge Africa Limited (Lafarge Africa Plc) on the Nigerian Stock Exchange fell by about 10% on Tuesday, as investor sentiment weakened due to an ongoing legal dispute. While equity analysts expect the stock to have potential upside as sales grow and capital spending increases, a legal dispute with minority shareholders appears to be limiting investors' willingness to buy. Trading data from the Nigerian bourse shows Lafarge Africa's share price has fallen sharply and its market capitalisation is 28% below its highest valuation in the past 52 weeks.
The Nigerian bourse had boosted Lafarge Africa's market capitalisation to more than 2.485 trillion naira, but the company's cement stocks continued to fall on negative perceptions. Lafarge Africa's share price fell to N110.85 per share on Tuesday, with 3.427 million shares traded on the day, with a total value of N385.41 million, data from the Nigerian Exchange (NGX) platform showed.
Lafarge Africa delivered an impressive performance in the first half of 2025, driven by a stronger-than-expected second quarter that delivered significant margin expansion amid easing cost pressures and strong pricing dynamics. Following the results, CardinalStone Securities Limited raised its 12-month target price to N198.25 from N116.11 previously, implying significant upside. Since then,
however, the share price has been trending lower, reflecting negative perceptions of Holcim's decision to reduce its stake in the company. The transfer of a majority stake to Huaxin Cement remains an upside risk and a medium-term catalyst,
analysts said. Meanwhile, the market is still paying attention to the legal action brought by Lafarge Africa's minority shareholder, Strategic Consulting Limited (Strategic Consultancy Limited).
The lawsuit challenges Holcim's secret sale of its majority stake in Lafarge Africa to Chinese company Huaxin Cement, accusing it of violating Nigerian corporate law and the pre-emption rights of local shareholders. Once the controversy erupted, the strategy consultancy claimed it did not learn of the deal until it was close to completion. The company subsequently accused Lafarge and most of its foreign shareholders of violating Nigerian laws designed to protect local investors and ensure transparency in transactions involving foreign entities. In
June, the Federal High Court in Lagos ordered all parties involved in the legal dispute over the sale of Lafarge Africa Ltd. to Chinese firm Huaxin Cement Ltd. to maintain the status quo pending the outcome of the appeal. Justice Lewis Arago made the order after Lafarge Africa Limited filed a notice of appeal challenging the court's previous decision rejecting its objection to the court's jurisdiction.