Lafarge in €1.5 Billion Rights Issuance

March 31, 2009

Cleary Gottlieb is representing Lafarge on its fully underwritten €1.5 billion rights issuance. Lafarge major shareholders Groupe Bruxelles Lambert and NNS Holding have each committed to subscribe their prorata shares, which would represent €0.5 billion. Lafarge announced its intention to conduct the offering on February 20. Lafarge's shareholders approved the rights issues at an Extraordinary General Meeting held on March 31st.

This issuance is part of a €4.5 billion package of financial structure strengthening measures announced by Lafarge in 2009, which includes the sales of assets, a reduction of the level of dividend and the conclusion of a new €1.0 billion banking facility to provide additional flexibility.

Cleary Gottlieb also advised Lafarge on the new €1.0 billion banking facility.