Cocoa processor Multi-Trex Integrated Foods Plc may soon awake from its slumber as the Nigerian Export-Import Bank has concluded arrangements to provide a ₦4-₦5 billion loan as working capital. This was disclosed during an oversight visit by the House of Representatives Committee on Currency and Banking.
The loan will be drawn from the ₦500 billion Export Stimulation Facility (ESF) and ₦50 billion Export Development Fund (EDF) provided by the Central Bank of Nigeria (CBN)
What led to the shutdown?
Multi –Trex Integrated Foods Plc took a ₦2 billion bridge loan from Skye Bank in 2008 which the company was unable to pay. A failed private placement meant to pay off the loan and finance its expansion was undersubscribed.This lead to the Asset Management Company of Nigeria (AMCON) acquiring the loan.
For shareholders of the company, resumption of operations gives them hope that in the near future, they could yield a return on their investments. Multi-Trex has traded at the ₦0.50 mark for several years. Negative retained earnings have also prevented it from paying dividends.
Workers that were laid off will also have cause to smile, as they would be re-engaged. The host community at Warewa, Ogun State also benefits as a resumption in operations means commercial activities in the area will be boosted.
About MultioTrex and NEXIM
The Nigerian Export-Import Bank (NEXIM) was established by Act 38 of 1991 as an Export Credit Agency (ECA) with a share capital of ₦50, 000,000,000 (Fifty Billion Naira) held equally by the Federal Ministry of Finance Incorporated and the Central Bank of Nigeria. The Bank replaced the Nigerian Export Credit Guarantee & Insurance Corporation earlier set up under Act 15 of 1988. Its functions include a provision of finance to export-oriented firms as well as credit insurance.
Multi-Trex Integrated Foods Plc was incorporated on the 30th of November 1999. The company was converted to a public limited liability company in October 2008. In 2010, the company was listed on the Nigerian Stock Exchange (NSE). The company’s principal activities include the processing of cocoa beans, export of industrial cocoa products, as well as manufacturing and domestic marketing of cocoa-based consumer products.
Multi-Trex closed at ₦0.50 on Friday’s NSE trading session, flat year to date