UAC of Nigeria Plc (UACN) and Chemical and Allied Products Plc (CAP), have refuted the alleged media report on the potential acquisition by UAC of shares held by the minority shareholders in CAP, and a subsequent delisting of CAP from the Nigerian Exchange Limited NGX.
Both UAC and CAP in a separate statement to the NGX noted that they are not pursuing these actions.
Instead, they emphasized their commitment to business growth, delivering value to stakeholders, and contributing to the Nigerian economy.
The statement read:
- “Our attention has been drawn to The Guardian Newspaper online publication of 26 April 2024 referencing a potential acquisition by UAC of Nigeria PLC (“UAC”) of shares held by the minority shareholders in Chemical and Allied Products PLC (“CAP”), and a subsequent delisting of CAP from the Nigerian Exchange Limited.
- At this time, UAC and CAP are not pursuing the above-referenced actions. UAC and CAP remain committed to growing their respective businesses to deliver value to stakeholders and continue to contribute broadly to the Nigerian economy”.
Chemical and Allied Products (CAP) Plc and Portland Paints and Products Nigeria (PPPN) Plc, both subsidiaries of UACN merged three years following shareholders’ approval.
CAP financial performance
Information from the financial statement of CAP reveal its parent company, UACN owns about 57.85% of its entire shareholdings. No other shareholder owns up to 5% of the company.
CAP reported N23.9 billion in revenue for the financial year ended December 31, 2023 according to its audited financial result submitted to the Nigerian Exchange Limited.
- The revenue rose 24% compared to N14.2 billion in the corresponding period of 2022.
- The company is one of the crown jewels of the UACN conglomerate and has consistently delivered profitability growth.
- The comapany’s operating profit also increased by 5% ahead of FY 2022 to N3.3 billion, while profit before tax of N3.8 billion, up 10% from N3.4 billion in FY 2022. Total profit for the year stood at N2.5 billion, a 6% increase compared to N2.4 billion posted last year.
- The Managing Director, Chemical and Allied Products Plc, Bolarin Okunowo, while commenting on the results stated that the growth recorded by the firm in the financial year under review was achieved despite facing numerous policy and macroeconomic challenges throughout the year.
CAP Plc is up 48% YTD ahead of the NGX All Share Index making it one of the best performing stocks on the exchange.
