UAC of Nigeria (UACN) Plc has indicated its plan to acquire additional shares from minority shareholders of Portland Paints and Products Nigeria (PPPN) Plc, which it acquired the majority equity stake in 2013.
UACN had in June 2013 acquired the majority equity stake of 51 per cent in PPPN.
A regulatory filing at the weekend indicated that UACN now plans to acquire additional 0.5 per cent of the total issued share capital of the company, equivalent to 1.0 per cent of the shares held by other non-UACN shareholders.
PPPN has current total outstanding shares of 400 million ordinary shares of 50 kobo each.
According to the report, UACN will be launching a mandatory takeover of up to 2.0 million ordinary shares of 50 Kobo each in PPPN at N4.47 Kobo per share. The takeover price represents a premium of 224 per cent on PPPN’s current market price of N1.38 at the Nigerian Stock Exchange (NSE).
The qualifying shareholders for the takeover bid are the shareholders of PPPN other than UACN whose names appear in the register of members of PPPN and are eligible to receive the takeover bid as at close of business on Wednesday November 16, 2016.
The latest acquisition bid might not be unconnected with the mandatory tender offer (MTO) provision of the Section 131 of the Investment and Securities Act (ISA) and Rule 445 of SEC, which make it mandatory for any institution or person that acquires at least 30 per cent of a company to make an MTO to other minority shareholders.
Portland Paints & Products Nigeria Limited was incorporated as a private limited liability company on 3rd September, 1985. The company by a special resolution of 24th April, 2008 changed its name to Portland Paints & Products Nigeria Plc, consequent upon it becoming a public limited liability company. The Company was listed on the floor of the NSE on 9 July 2009.
PPPN principally engages in the business of manufacturing and sale of paints, marketing of sanitary wares and marketing of Hempel marine and protective coatings for the oil and gas sector.