UACN raise N6 billion capital for Livestock Feeds, UPDC

UAC of Nigeria (UACN) has opened application lists for supplementary capital raising for two of its subsidiaries-Livestock Feeds Plc and UACN Property Development Company (UPDC), as the conglomerate launched a major bid to recapitalise its businesses.

Livestock Feeds is seeking to raise about N750 million new equity funds from existing shareholders. Livestock Feeds is offering a rights issue of 1.0 billion ordinary shares of 50 kobo each at a price of 75 kobo per share. The rights issue has been pre-allotted on the basis of one new ordinary share for two ordinary shares already held by the shareholder.

The rights issue’s price of 75 kobo per share however, represents about 15.4 per cent increase on the company’s opening market value of 65 kobo today at the Nigerian Stock Exchange (NSE).

UPDC is seeking to raise about N5.16 billion new equity funds from its existing shareholders to reduce its debt burden and provide supportive capital for long-term growth.

UPDC is offering a rights issue of about 1.72 billion ordinary shares of 50 kobo each at a price of N3 per share. The shares were pre-allotted on the basis of one new ordinary share for every one ordinary share held as at the qualification date. However, the rights issue price of N3 per share represents a premium of 71.4 per cent on UPDC’s opening market price of N1.75 at the start of trading today at the Nigerian Stock Exchange (NSE).

The application lists for the two offers will run concurrently and are expected to close on Friday May 26, 2017.

UPDC was spun off from UACN and its shares were listed on the NSE in 1997. UACN still holds the largest 46 per cent equity while First Trustees Nigeria holds the second largest stake of 12 per cent. Other corporate bodies hold some 18 per cent while individuals and trustees hold the balance of 24 per cent.

UACN had last month closed application list another N1 billion rights issue for another subsidiary, Portland Paints and Products Nigeria (PPPN). PPPN floated a N1.02 billion rights issue by offering 600 million ordinary shares of 50 kobo each at N1.70 per share.

Group Managing Director, UAC of Nigeria Plc, Mr. Larry Ettah, has said the new equity funds will be used to restructure balance sheet and support business expansion programme.

“We will apply the planned rights proceeds to minimise the debt exposure risks of our business as well as carry out targeted expansion in our operations. The business will focus on its growth brands as well as make the necessary investment in marketing to improve its brands’ awareness and visibility,” Ettah said.

Nigeria’s oldest surviving business, UACN started business in Nigeria in 1879, well ahead of the 1914 amalgamation that created the nation.

The UACN Group consists of several active companies spreading through manufacturing, services, logistics and real estate sectors of the economy.

Advertisements