By Ozioruva Aliu

BENIN CITY – THE shareholders of Austin Laz and Company Plc have authorised the Board of Directors to raise additional capital of N2.1billion or such other amount or equivalent through private placement.

The shareholders gave the directors the nod at an extraordinary general meeting yesterday held at the corporate Headquarters of the company in Benin City.

Under the resolutions the shareholders unanimously voted in favour of the decision and empowered the directors to use the unissued shares capital of the company to issue the new shares.

The shareholders who attended the meeting virtually and physically, also authorised the directors to allot the new ordinary shares in connection with the private placement at a price of N5.00 per share to one or more investors in tranches.

“The board of directors is hereby authorised to appoint all professional parties and execute, sign or enter into all agreements, documents, deeds, undertakings or instruments necessary for the successful implementation of the agreed mode.

“The board of directors are hereby authorised to take such further actions and do such further things as maybe required to give effect to the above resolutions including but not limited to obtaining the approvals of relevant regulatory authorities including, the Securities and Exchange Commission and the Nigerian Exchange Limited as well as complying with the directive(s) of any relevant regulatory authority” among others.

The shareholders further ratified and adopted all steps already taken by the board of directors in connection with the proposed capital raise through private placement or business combination or merger or hybrid.

Speaking after the resolutions, Mr Christopher Itua, chairman, board of directors of the company described the authorisation as laudable noting that the raising of the share capital would make the company one of the best in the country.

Itua represented by Nyemike Ogbechie, a board member, said the shareholders have been able to strategise and come to the conclusion that the company needed to be restructured for optimal productivity and competitiveness in the Nigeria industrial sector.

On his part, Dr Austin Lazarus Asimonye, Managing Director/Chief Executive Officer of the company described the resolutions as a step in the right direction that would turn the company around for the better.

According to him, the Extraordinary General Meeting was meant to authorise the board to use the capital for an investment/ merger which he said was for the company to buy into another flourishing business.

“We are very hopeful that the company is going to turn around greatly, which will bring joy to the investors, to the shareholders, and to the country at large.

“We’re buying into a new technology, a new business. We’re taking a majority share in the business. So it will become a subsidiary of the Austin Laz company”, he added.