VFD Group has announced it will be exiting from automobile dealership company, Germaine Auto Center (GAC). The development is contained in a press statement sent to Nairametrics.
Note that the divestment is happening two years after the group secured a majority stake in GAC. Prior to this time, VFD Group owned a 30% stake in GAC. This gave the company management control in 2016.
VFD Group had invested in GAC at a time the company was struggling financially. The deal, however, proved to be a much-needed lifeline for the vehicle maintenance company, as it returned to profitability under the leadership of VFD Group’s appointed management.
[READ ALSO: Reasons VFD and others exited NEM Insurance]
How it changed for GAC: According to VFD Group, GAC climbed back to its leadership position in the auto industry due to the aggressive push for cost minimisation and revenue maximisation strategies.
VFD had appointed its Chief Operating Officer, Gbenga Omolokun, to lead GAC as the Managing Director/Chief Executive Officer during the two years it held majority stake in the company.
“In spite of these tough fiscal and operating environment, Germaine was stabilized and effectively positioned for effective growth. In the course of VFD Group’s involvement in the firm, the Company settled most of its outstanding customers liabilities and amicably rescheduled its creditors and importantly timed profit.” –VFD
VFD leaves with more: While VFD Group may have divested its invested percentage in Germaine Auto Center, VFD Group, the deal also saw the company leave with 25% accumulated return. Speaking on the exit, VFD’s Managing Director/Chief Executive Officer, Nonso Okpala stated;
“We are always driven by dedication to provide unmatched returns to our investors and stakeholders. This investment has resoundingly met both expectations.”
Meanwhile, for Omolokun, “the new Germaine is poised to take the market by storm and we (at VFD) wish the current Board and Management of Germaine, the best of luck in their future endeavor.”
[READ ALSO: VFD Group seeks to acquire regional commercial banking license, others]
About GAC: Germaine Auto Centre is an integrated automobile dealership, located in Lekki, Lagos. For 20 years, Germaine has been a household name for automobile purchase (new and certified pre-owned), servicing, spare part sales and vehicle bodywork by providing quality service to individuals and corporate organizations.
About VFD Group: VFD Group is a financial services-focused proprietary investment company that creates value by working within Nigeria’s informal financial sector. The company operates in every area of the financial industry through our subsidiaries, providing Financial Advisory, Asset Management, Currency, Real Estate, Debt Services, and Private Funds Management Services, taking deposits and providing loans at very competitive rates.
