Federal High Court, Ikoyi, Lagos, will today, Wednesday, June 11, hear the substantive suit challenging the proposed sale of Lafarge Africa Plc. to Chinese firm, Huaxin Cement Limited.
The hearing was fixed following the dismissal of a motion filed by Lafarge Africa and its parent company, Holcim Group, challenging the court’s jurisdiction to hear the case, reports The Guardian.
The legal battle was initiated by Strategic Consultancy Limited, a Nigerian firm and shareholder in Lafarge Africa, over what it describes as a “surreptitious” divestment of the company’s 83.81 per cent majority shares held by Holcim Group.
The planned sale to Huaxin Cement, a Chinese-based multinational, is at the centre of the controversy.
In the coming trial, the court will examine whether the transaction violates Nigerian laws, including the Companies and Allied Matters Act (CAMA) 2020, the Securities and Exchange Commission Act, and the Nigeria Investment Promotion Commission (NIPC) Act, especially in relation to minority shareholder rights and dealings with foreign entities not registered in Nigeria.
Lafarge Africa, which is publicly listed on the Nigerian Exchange, became a dominant force in the local cement market after acquiring 83 per cent stakes in three former Federal Government-owned cement firms during the privatisation exercises of 2001 and 2002.
Holcim Group, a Swiss multinational and majority owner of Lafarge Africa, had notified the Securities and Exchange Commission (SEC) of an ongoing internal restructuring.
However, Strategic Consultancy alleged that the planned share divestment was conducted secretly and without giving local shareholders, including itself, the right of first refusal or opportunity to acquire the shares.
With the court affirming its jurisdiction and expanding the list of defendants, attention now shifts to the substantive hearing today.
