Nigeria’s oldest surviving and largest conglomerate, UAC of Nigeria (UACN) Plc on Wednesday secured the crucial approval of its shareholders to raise N15.4 billion in new equity funds in a major move to consolidate the financial agility of the group.
At the annual general meeting at Golden Tulip Festac, Lagos, shareholders endorsed selling of new ordinary shares to existing shareholders to raise up to N15.4 billion, in a pre-alloted offering method known as rights issue.
According to the three co-joined resolutions passed by the meeting, the board of directors of the conglomerate is authorised to raise up to N15.4billion way of a rights issue, “through the issuance of ordinary shares on such other terms and conditions as the directors may deem fit or determine”.
Shareholders also mandated the board to sell unsubscribed shares under the rights issue in the event of an under-subscription to interested investors by waiving their pre-emptive rights to such shares. They also gave the directors the mandate “to do all acts and things” that are necessary for the success of the rights issue.
Chariman, UAC of Nigeria (UACN) Plc, Mr. Dan Agbor, said there was an urgent need to increase the equity base of the group to support its business plan and other members of the group.
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He said the additional capital will enable the group to be able to provide its subsidiaries with working capital support in a timely manner so that the subsidiaries can quickly respond to challenges and take advantage of emerging opportunities.
He pointed out that many members of the group were in need of new capital injection and the group must be ready to support them by picking up its rights.
Nigeria’s oldest surviving business, UACN is owned by some 190,000 shareholders. UACN started business in Nigeria in 1879, well ahead of the 1914 amalgamation that created the current Nigerian nation.
The Group consists of several active companies spreading through manufacturing, services, logistics and real estate sectors of the Nigerian economy. These include four quoted subsidiaries-CAP Plc, UACN Property Development Company (UPDC) Plc, Livestock Feeds and Portland Paints and Products Nigeria Plc; in addition to the parent company, UACN. UPDC Real Estate Investment Trust, which is also quoted on the NSE, is a subsidiary of UPDC.
Other members of the group include UAC Foods Limited, UAC Restaurants Limited, MDS Logistics Plc, Warm Spring Waters Nigeria Limited, Grand Cereals Limited, and Unico CPFA Limited. Listed in 1974,
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