Lafarge Africa Plc's plea challenging the court's jurisdiction to hear a lawsuit regarding its planned sale of shareholding to a Chinese investor has been dismissed by the Federal High Court in Ikoyi, Lagos.
Strategic Consultancy Limited, a Nigerian business and shareholder in Lafarge Africa, had sued the cement company over its intention to sell 83.8 per cent of the parent company’s shares in the Nigerian cement firm.
During the 2001 and 2002 privatisation exercises, Lafarge, which is listed on the Nigerian Exchange, acquired 83 per cent of the total shares of three cement companies formerly owned by the federal government. The Swiss company, Holcim Group, which holds 83.81 per cent of Lafarge Africa’s issued share capital, reportedly restructured the company internally, according to its disclosure to the Securities and Exchange Commission.
Strategic Consultancy filed a lawsuit against Lafarge, Holcim Group, the Nigerian Exchange Limited, and the Central Securities Clearing System to halt the planned sale of Lafarge to the Chinese company, Huaxin Cement Limited. The suit alleged that the sale was conducted covertly, without allowing Strategic Consultancy and other minority shareholders to purchase the shares. It also claimed that the transaction violated various laws and regulations, including the Companies and Allied Matters Act, 2020; the Securities and Exchange Act; and the Nigeria Investment Promotion Act, particularly concerning the rights of minority shareholders and the prohibition of transactions with unregistered foreign entities.
After hearing arguments from the plaintiff’s counsel, Dr. D.A. Awosika (SAN), the first defendant’s counsel, Babatunde Fagbohunlu (SAN), and the second defendant’s counsel, Uzoma Azikiwe (SAN), Justice Lewis Allagoa, in a ruling delivered on Thursday, May 15, dismissed the defendants’ preliminary objection challenging the court’s jurisdiction.
“The motion of the first and second defendants objecting to the Court's jurisdiction is hereby dismissed,” the judge ruled.
Justice Allagoa also ordered that Caricement BV (Netherlands) and Associated International Cements Ltd (England) alleged owners of the disputed shares be joined as the fifth and sixth defendants in the case.
In a third ruling, the court granted the plaintiff’s request for leave to serve the newly added defendants outside the court's jurisdiction.
“It is hereby ordered that the persons sought to be joined herein are hereby joined as prayed, and leave to issue and serve the Originating Summons out of jurisdiction is hereby granted,” the judge declared.
The case has been adjourned to June 11, 2025, for continuation of proceedings.