By MICHAEL EBOH
UAC of Nigeria Plc, UACN, has announced plans to acquire majority equity stake in Portland Paints and Products Plc.
According to a statement by the company, signed by Mr. Mike Asuquo, Public Relations Manager, the company has already signed a Memorandum of Understanding (MOU) with Portland Paints as regards the planned investment, which is also subject to the approval of the relevant regulatory authorities.
He said the transaction will allow Portland Paints to leverage the relative strengths of UACN, yielding considerable benefit to stakeholders of both companies.
Asuquo disclosed that the proposed transaction is driven by potential synergies between the two companies and is in line with UACN’s strategy of building a portfolio of brands and businesses geared to the growth segments of the Nigerian economy, and partnerships that deliver long-term value to the company and its stakeholders.
He said, “UACN and Portland Paints, with their established presence in the Nigerian paint industry, are uniquely positioned to partner on deepening the presence of both companies in existing markets, achieve scope and scale economies in procurement, production and distribution.
“Shareholders are advised to exercise caution when dealing in UACN shares until a final announcement is made.
“The proposed transaction is subject to the approvals of the Securities and Exchange Commission and the Nigerian Stock Exchange. Further announcements will be made as material events occur.”