By Nkiruka Nnorom
UAC of Nigeria Plc’s bid to bolster its working capital and recapitalise the other subsidiaries within the Group received a major boost, yesterday, following shareholders approval of N15.4 billion Rights Issue proposed by the Board of Directors.
The shareholders also approved the N1.92 billion dividend, which translates to N1.00 per ordinary share of 50 kobo each.
Addressing shareholders at the Annual General Meeting, AGM, in Lagos, the chairman, Mr. Dan Agbor, said the additional capital would help UAC to partake in the various Right Issues being undertaken by its subsidiaries in order to provide them with enough capital to take advantage of emerging opportunities in their various sectors.
He said that already, the Right Issues through which two of its subsidiaries, UACN Property Development Company, UPDC Plc, and Livestock Feeds Plc, are raising N5.16 billion and N750 million respectively, are at various stages of execution, while Portland Paints and Products Nigeria, PPP, Plc has concluded offer for N1.02 billion.
He stated: “The Board has identified an urgent need to bolster your company’s capital position. This will ensure that your company is able to subscribe for these rights issues and provide its subsidiaries with working capital support in a timely manner, so that the subsidiaries can quickly respond to challenges and take advantage of emerging opportunities.”
On the company’s financial performance, he said: “Despite the daunting challenges posed by the operating environment, your company was able to deliver a mixed to good result in 2016 through cost optimisation initiatives, innovation in key categories and extensive retail market expansion.”