The Federal High Court in Ikoyi, Lagos, will tomorrow, Wednesday, June 11, hear the substantive suit challenging the proposed sale of Lafarge Africa Plc to a Chinese firm, Huaxin Cement Limited.

The hearing follows the dismissal of a preliminary motion filed by Lafarge Africa and its parent company, Holcim Group, contesting the court’s jurisdiction.

The suit was filed by Strategic Consultancy Limited, a Nigerian firm and shareholder in Lafarge Africa, which is opposing what it describes as the “surreptitious” divestment of Holcim Group’s 83.81 per cent majority stake in the company.

At the centre of the legal dispute is the planned sale to Huaxin Cement, a China-based multinational.

The court is expected to determine whether the transaction breaches 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, particularly concerning minority shareholder rights and the legality of dealings with unregistered foreign entities.

Lafarge Africa, a publicly listed company on the Nigerian Exchange, gained dominance in the local cement market after acquiring significant stakes in three former federal government-owned cement companies during the privatisation exercises of 2001 and 2002.

Holcim Group, a Swiss multinational and majority owner of Lafarge Africa, had informed the Securities and Exchange Commission (SEC) of an ongoing internal restructuring.

However, Strategic Consultancy Limited alleges that the proposed share divestment has been conducted in secret, without offering local shareholders, such as itself, the right of first refusal or any opportunity to acquire the shares.

The suit, filed against Lafarge Africa, Holcim Group, the Nigerian Exchange Limited, and the Central Securities Clearing System (CSCS), claims the transaction undermines minority shareholder rights and involves unauthorized dealings with foreign companies not duly registered in Nigeria.

During a pre-trial session on May 15, 2025, Justice Lewis Allagoa dismissed the preliminary objections raised by Lafarge and Holcim.

The objections, argued by Babatunde Fagbohunlu (SAN) for Lafarge and Uzoma Azikiwe (SAN) for Holcim, were opposed by Dr. D.A. Awosika (SAN), counsel for Strategic Consultancy.

“The 1st and 2nd defendants’ motion objecting to the court’s jurisdiction is hereby dismissed,” ruled Justice Allagoa.

In a significant development, the court also ordered that Caricement BV (Netherlands) and Associated International Cements Ltd (England) be joined as the 5th and 6th defendants, respectively. Both entities were identified as beneficial owners of the shares in question.

The court further granted permission to serve them with court documents outside Nigeria.

“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,” Justice Allagoa declared.

With jurisdiction affirmed and the defendant list expanded, focus now shifts to the substantive hearing of the case tomorrow.