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Citiprops takes over DN Meyer, restructures for growth

By Peter Egwuatu
Citiprops Limited, a new core investor has taken over the management of DN Meyer Plc following the acquisition of 40 per cent equity in the paint making company.

The company used to be a subsidiary of Dunlop Plc ( now DN Tyre and Rubber Plc ) but the ownership changed in 2004 when Dunlop sold its stake to ACIMS Limited and Nigerian public through a Management Buy Out (MBO).

In an interaction with newsmen in Lagos, weekend, Managing Director/CEO, Mr. Bola Olayinka said that the new management team is committed to the growth of the company and to return it to its former leadership position where all stakeholders will have cause to merry.

According to him, “ In recognition of its needs to re-invigorate its operations, Citiprops purchased the stake of ACIMS Limited through a cross deal on the Nigerian Stock Exchange (NSE). Consequently, Citiprops took over the management of the company which has led to Sir Oluremi Festus Omotoso and Mr. Kayode Falowo admitted as members of the Board of Directors at a meeting of the Board held recently at DN Meyer’s head quarters.”

He further disclosed that Omotoso is now the new Chairman of the company , while Falowo is a non executive director, adding that they are expected to bring their years of experience to move the company forward.

The new Chairman comes to the Board with rich cognate experience from the Unilver Group as Personnel Director, Odu’a Group as Group Managing Director, and the Lagos Chamber of Commerce as Director General /CEO, amongst others.

For Koode Falowo, he is currently the Managing Director, Greenwich Trust Limited; Chairman, Association of Issuing Houses of Nigeria; and fellow of Institute of Stockbrokers (CIS), amongst others.

Also affected in the re-structuring exercise is Adeola Omosebi, who was the Group Head, Finance and Investment, Greenwich Trust Limited, but now Finance Director.  Meanwhile. the former Finance Director of DN Meyer, Mr. Femi Akinola, has been assigned the role of Director, Special Duties.

Following, the takeover by the new core investor, Mr.J.D. Lawuyi who served as Chairman of the company before now has resigned his appointment both as Director and Chairman. Mr L.A. Bakare, a long time member of the Board of the company also resigned to pursue other personal interest.According to Olayinka,

“ The changes are targeted at repositioning the company to its rightful place, especially as the company approaches her 50th anniversary. We are assuring all our stakeholders of the Boad’s resolve to deliver optimum returns to all stakeholders of the company.“ We have started to talk with our shareholders and to other stakeholders and they have promised to give us their support.

We would look at various options of raising funds to boost our operations. We need radical changes that will lead us to sustainable growth. We want to remain very competitive as the Board has been strengthened and remains committed to regain the company’s prestige and respect in the industry.  As part of effort to strengthen the Board various committee have been set up such as executive committee, statutory committee, establishment committee to mention but a few.

We shall return to dividend payout as quickly as possible when the indices are put alright and sustained.Meanwhile, DN Mayer has been operating in Nigeria since 1940 and was formerly known as Hagemeyer Nigeria Plc. In 1994, about 68 per cent of the company’s issued share capital was acquired by Dunlop Nigeria Plc. The acquisition by Dunlop led to the change of the corporate and brand name to DN Meyer Plc and Meyer paints respectively.


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Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.