By Peter Egwuatu

Shareholders of UAC of Nigeria PLC (UACN) have unanimously endorsed  the Board of Directors proposal to restructure the company and as well as partner Tiger Brands Limited, a company in South Africa.

Addressing shareholders during UACN’s Extraordinary General Meeting to endorse the partnership with Tiger Brand at the Golden Tulip Festac, Lagos during the weekend, UACN Chairman, Senator Udoma U. Udoma said: ‘’in line with the company’s growth plans, operating Divisions are being unbundled into limited liability Companies.

At the end of the exercise, UACN would have been transformed into a holding company structure. ‘’The objective of the unbundling is to empower the units to optimally pursue market opportunities in a timely manner.

The emergence of UAC Property Development Company Plc as a leading real estate development company in Nigeria after the unbundling of UACN’s erstwhile Property Division validates the appropriateness of this approach.’’

The Chairman identified the key areas of synergies between UACN and Tiger Brands to include product and brand portfolio enabling capabilities in terms of product innovation, brand building, channel and customer management, operating expertise, technology as well as marketing and distribution competencies. ‘’The collaboration will strengthen the market position of UAC Foods Limited in readiness for the intense and growing local and international competition,’’ he stated.

Stressing that the alliance offered the most optimal means of growing the business and maximizing shareholder value, he re_assured the shareholders that the company’s interests will not only be protected but that steps have been taken to ensure a fair, transparent and independently managed process.

Also, speaking to newsmen after the EGM, Managing Director/CEO, UACN Plc, Mr. Larry Etta said, “ the benefits of the joint venture is that the strategic partnership is being done with an experienced international player that would bring technical and marketing expertise.

: Tiger has track record of developing, acquiring and growing market leading local brands; the company has a strong portfolio of heritage brands similar to UAC; Tiger Brands has best_in_class manufacturing capabilities in different food and beverage categories with 46 manufacturing sites in South Africa and Tiger Brands has strong product branding and marketing expertise as evidenced by its leading brands.

He further noted that the joint venture involves three of UACN’s current businesses in the snacks, dairies and bottled water categories _ UAC Foods, UAC Dairies and Spring Waters Nigeria Limited _ which will form the new UAC Foods Limited.

The new UAC Foods Limited will continue to manufacture the products currently being manufactured by the Divisions and Spring Waters Nigeria Limited, including Gala Sausage Roll, Funtime Cake, Snaps Cheeseballs, Funtime Coconut Chips, Gala Crunchies, Supreme Ice_cream, Supreme Flavoured Milk, Delite Fruit Juice, Swan Water and other products.