August 26, 2013

Berger Paints N543m rights issue opens


The Berger Paints’ 72.5 million ordinary issues of 50k per share at N7.50 to its existing shareholders has opened across the country following the completion board meeting held in Lagos recently.

The rights are being offered on the basis of one new share for every three held by members as at May 31, 2013

The net proceeds of the offer amounting to N543.42 million will enable the leading paints and allied company to finance the modernisation of its manufacturing operations.

Chairman, Berger Paints Nigeria Plc, Mr. Clement Olowokande, said the net proceeds of the rights issue estimated at N521.71 million would be used to finance the modernisation of the company’s factory operations.

According to him, the modernisation was the main thrust of a strategic plan to ensure that the company continues to operate at the forefront of paint technology by replacing its aging manufacturing infrastructure.

He said the modernisation of the company’s factory operations would lead to improved efficiency that would positively impact on turnover and profitability. Olowokande said that the company also plans to commit substantial investments on major improvements of its distribution channels.

He said the company has taken several initiatives and entered new partnership that would greatly enhance its products and services in the Nigerian paint and coating industry in the period ahead.