Court gives ruling on CAP’s acquisition of Portland Paints

The Federal High Court has approved the merger between paint manufacturers, Chemical Allied Products (CAP) Plc and Portland Paints and Products Nigeria Plc.

The approval by the court takes both companies a step closer to operating as one entity by July 1, 2021, which is when the merger will take effect.

Portland Paints will be incorporated into CAP Plc, while the name of the latter will remain as the brand of the new company. Shareholders of both sides have already agreed to the deal.

Ripples Nigeria had reported that liabilities of Portland Paints will be transferred to CAP Plc, which will pay the resolved company’s shareholders through cash or shares.

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It was gathered that a cash consideration of N2.90 kobo for every share held in Portland Paints have been offered to the shareholders or a share consideration of 1 new ordinary share of CAP at N0.50kobo, in exchange for every 8 ordinary share held in Portland Paints.

With the new judgement and impending regulatory approval, the Managing Director of Portland Paints, Bolarin Okunowo, said the deal is value accruable to shareholders of both companies.

Okunowo added in a statement, “Subject to the approval of the Exchange, the shares of Portland Paints will be placed on full suspension with effect from the close of business on June 30, being the business day immediately preceding the effective date and the date on which the register of members of Portland Paints will be updated for the purpose of determining the shareholders eligible to receive the scheme consideration.”

By Fakoyejo Ayodeji…

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