Court gavel
The Federal High Court in Ikoyi, Lagos, is set to begin hearing a suit challenging the proposed sale of Lafarge Africa Plc to Chinese firm Huaxin Cement Limited.
The suit was initiated by Strategic Consultancy Limited, a Nigerian firm and shareholder in Lafarge Africa, over the “surreptitious” divestment of the company’s 83.81% majority shares held by Holcim Group.
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. Strategic Consultancy Limited alleges that the planned share divestment was conducted secretly and without giving local shareholders the right of first refusal or opportunity to acquire the shares.
In a previous ruling, Justice Lewis Allagoa dismissed Lafarge’s preliminary objection contesting the court’s jurisdiction.
The court also ordered that Caricement BV (Netherlands) and Associated International Cements Ltd (England) be joined as defendants in the suit.
The suit highlights concerns over minority shareholder rights and dealings with foreign entities not registered in Nigeria.
The outcome of the case could have significant implications for the business community and foreign investment in Nigeria.
