By Peter Egwuatu
Shareholders of RAK Unity Petroleum Company Plc have unanimously endorsed the proposal by its Board of Directors to pay a dividend of 10 kobo per share for the financial year ended December 31, 2017.
The shareholders also approved the Board’s plan to drive growth inorganically through a merger or acquisition in order to compete favourably to the emerging changes and trends in its business.
The shareholders’ associations chairmen, who spoke at the 15th Annual General Meeting, AGM, in Lagos commended the company for the progress recorded during the year in spite of the difficult operating environment.
Commenting at the meeting, the shareholders called on the Board to consider the issue of raising the company’s share capital through issuance of Rights Issue.
Chairman, Bicorn Shareholders Association of Nigeria, Chief Sotude Sopeju said: “We commend your performance especially the revenue that grew by over 25 percent. We know the tough environment you are operating and for declaring dividend is a big achievement. We also hope you will pay higher dividend come next year.”
Former National Secretary of Nigerian Shareholders Solidarity Association, Chief Robert Igwe, said: “It is time for the company to increase its share capital to be able to compete effectively in the industry. The shareholders would be ready to pick up their Rights once the company comes up with the Issue. It is cheaper to raise fund through the capital market than banks. After the Right Issue, the Board should be ready to reward the shareholders with bonus script since it has adequate reserves.”
Speaking, the Chairman of RAK Unity Petroleum, Mr Edo-Abasi Bassey Ukpong, said: “In consideration of the company’s performance, the Board has proposed a dividend of 10 kobo per share, totalling N15.9 million. To continue to grow our business, despite the tough operating environment, RAK Unity Petroleum Board has begun a strategic review process of our business to evaluate all the options open to us to significantly improve our company’s performance.”
He said: “The company is determined to achieve its strategic objectives by driving growth inorganically through a merger or acquisition; thereby enabling. the company to respond competitively to the emerging changes and trends in our business operating environment.”