Shareholders of UAC of Nigeria Plc have approved the request by the Board of Directors to raise additional N20 billion from the capital market to support its expansion strategy.
They also authorised payment of N3.3 billion dividends, which translates to N1.75 per ordinary share of 50 kobo each for the year ended December 31, 2014 as well as plan by the company to increase its approved share capital from N1 billion divided into two billion ordinary shares of 50 kobo each to N1.7 billion divided into three billion ordinary shares of 5o kobo each and 400 million preference shares of 50 kobo each.
The shareholders authorised the Board to raise the additional capital by way of Rights Issue and Private Placement.
UACN intends to offer 160.07 million ordinary shares by way of Rights to the existing shareholders in the proportion of one new share for every 12 ordinary shares previously held.
Addressing shareholders at the Annual General Meeting in Lagos, the Chairman, Senator Udoma Udo Udoma, said the funds to be raised would be used to pursue the company’s plan to improve returns and address the high leverage position in two of its subsidiaries – UPDC and Portland Paints and Products Plc.
Delivering the financial results before the members, Udoma said despite the tough business environment, the company recorded a modest top-line growth of nine per cent from N78.7 billion in 2013 to N85.7 billion in 2014. Profit before taxation, according to him, was N14.1 billion compared to N13.9 billion of 2013.
He said that the company has continued to manage market dynamics and innovatively lead competition in its markets. “In the year under review and in line with our vision to be number one in our chosen markets, we achieved market leadership with our Vital Fish feed brand, which was introduced just three years ago.
