Presco Plc has announced that it is currently in the process of raising N3 billion via a Rights Issue. Proceeds of the Rights Issue is expected to be used to reduce the Company’s debt and foreign exchange exposure. Presco currently has debt of about N5.2billion with Zenith Bank, UBA and IBTC as creditors. Here Is What You Need To Know About Presco’s Proposed Rights Issue
Presco Plc announces that it has commenced the process to raise up to N3 billion by way of Rights Issue following shareholders’ approval at the Annual General Meeting held on 22 July 2014.
The Directors believe that the proposed Rights Issue presents an excellent opportunity for existing shareholders to increase their investment in the company, which has consistently recorded impressive results and also paid dividends to its shareholders over the years.
Mr. Uday Pilani, Managing Director of the Company, explained that the Directors have decided to undertake the Rights Issue to give the Company financial flexibility and reorganise its capital structure. The net proceeds of the Rights Issue will be used to reduce the Company’s debt and foreign exchange exposure.
Get the press release here