(Add detail, background)
LAGOS May 8 Lafarge Africa wants to
raise 140 billion naira ($445.9 million) in fresh equity and
convert some loans into shares as part of a planned rights issue
after it reported losses last year.
The Nigeria-based business of Franco-Swiss cement group
Lafarge Holcim, will seek shareholder approval next
month for the capital raising and for loans from existing
shareholders to be converted into equity, it said on Monday.
The move follows a similar exercise by Diageo-owned
Guinness Nigeria, with businesses in the country having to
contend with a second year of a recession brought on by low oil
prices that cut government revenue and crippled dollar supplies
in Africa's biggest economy.
Lafarge Africa swung to a full-year pretax loss of 22.82
billion naira last year from a profit of 29.29 billion naira in
2015, it reported in March, though it returned to profit in the
first quarter of this year.
Shares in the company are up by more than 20 percent this
year, having registered a 58 percent slump in 2016.
($1 = 314.00 naira)
(Reporting by Oludare Mayowa; Writing by Chijioke Ohuocha;
Editing by Louise Heavens and David Goodman)