September 9, 2013

Berger Paints pledges to enhance shareholders’ value


Berger Paints Nigeria Plc has pledged to enhance shareholders’ value as it commenced fresh capital injection in a bid to reposition the company.

The company is offering 72.5 million ordinary issues of 50k per share at N7.50 to its existing shareholders. The net proceeds of the offer amounting to N543.42 million will enable it finance the modernization of its manufacturing operations.

The offer is coming on the heels of recent completion board meeting held at the company’s head office in Lagos for members of the board of directors of Berger Paints, issuing houses to the offer, stockbrokers to the issue and other parties where they signed the final documents of the rights issue in the presence of officials of Securities and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE) respectively.

Application list for the rights issue opened on August 20, 2013 and the rights are being offered on the basis of one new ordinary share for every three ordinary shares held as at May 31, 2013.

Chairman, Berger Paints Nigeria Plc, Mr. Clement Olowokande, said the net proceeds of the rights issue estimated at N543.42 million would be used to finance the modernisation of the company’s factory operations.

According to him, the modernisation is 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 will positively impact on turnover and profitability.

The chairman said the company also planned to commit substantial investments on major improvements of its distribution channels.

In a bid to enhance its competitive edge in the paints and allied products industry, Berger Paints has taken several initiatives and entered into a new partnership that will greatly enhance its products and services in the Nigerian paint and coating industry in the future.

Under this arrangement, Berger Paints has entered into partnership agreement with KCC Corporation of South Korea, one of the largest paints and chemical manufacturing companies in the world.

Both companies will jointly serve the Nigerian paint and coating market in the first instance and thereafter, the broader business community of West African States (ECOWAS).

Berger Paints will provide KCC with ease of access it requires to operate in Nigeria as well as a strong platform to access the growing marine and protective coating market in Nigeria while KCC Corporation will contribute advanced technology, technical and training support as well as research and development. Its products are internationally certified and qualified to operate in the Nigerian oil and gas industry.

Managing Director of Berger Paints, Mr. Tor Nygard said the company decided to partner with KCC Corporation, the largest coatings manufacturer in Asia, to offer the growing Nigerian maritime market superior products that are comparable to competition.

He noted that the introduction of KCC brands was a demonstration of Berger’s commitment to providing customers with real choice and widest range of marine and heavy duty coatings that meet the specific needs of their vessels, ship, fleets, offshore and mainstream operations.

Besides this, Berger Paints has also commissioned a N650 million building materials and related products shopping complex in Abuja, the Federal Capital Territory (FCT) as part of its diversification strategy and also to consolidate the transformation agenda of the Federal Government of providing housing for all Nigerians.