The merger between Vitafoam Nigeria Plc and Vono Products Plc has been completed.
The Nigerian Stock Exchange (NSE) has delisted the entire shares of Vono Products. This is because of its merger with Vitafoam Nigeria Plc.
According to the NSE, Vitafoam and Vono Products had obtained Court’s approval of their scheme of merger which took effect from March 11, 2016.
NSE further explained that at the conclusion of the merger process, there would be a dissolution and delisting of Vono Products Plc from the Daily Official List of the NSE.
In August 2010, Vitafoam Nigeria acquired majority shareholding in Vono Products and took over the board and management of the company.
In 2012, Vono launched a N840 million rights issue for the purpose of strengthening its operations and pursue its expansion programme.
NSE had placed trading of Shares of Vono Products on suspension since March 21, 2016.
The Group Managing Director, Vitafoam Nigeria Plc, Mr. Taiwo Adeniyi said merger of the two companies would establish better values for shareholders and enhance the long-term competitiveness of the larger company.
He said the shareholders of the two companies voted in favour of the merger because of potential benefits such as economies of scale, cost savings and improved operational and administrative efficiencies among others.
According to Adeniyi, “If we produce foam and Vono produces furniture, they are complementary. It is a strategic decision for Vitafoam to have Vono as a subsidiary. As you are aware, we have other subsidiaries such as Vitabloom, Vitagreen and Vitapur.
Each of them produces distinct products. But they have something in common and this defines the unity of purpose.”
Both companies had last year agreed to a merger, by seeking to combine their business operations to ensure business efficiency.