UAC
of Nigeria Plc (UAC) has made known its plans to
boost group operations with N15.4billion rights issue in line with the
financial restructuring of its subsidiaries using internally generated funds.
The Chairman, Dan Agbor, addressing shareholders
during the firm’s 2016 yearly general meeting in Lagos, on Wednesday, disclosed
that the rights issue of Portland Paints
has been concluded while the rights issues of Livestock Feeds and UPDC
are at various stages of execution, due to delayed regulatory approvals.
“Grand Cereals also plans
to raise equity by way of a rights issue that your company also intends to
subscribe for. The board has identified an urgent need to bolster your
company’s capital position. This will ensure that your Company is able to
subscribe for these rights issues, and provide its subsidiaries with working
capital support in a timely manner, so that the subsidiaries can quickly
respond to challenges and take advantage of emerging opportunities,” he added.
He recalled that previous plans to
raise fresh funds internally rights issues was suspended and announced during
the 2025 general meeting, saying: “I informed you that
the Board had taken a decision to discontinue the 1 for 12 rights issue that
was approved at the 2015 meeting, due to the prevailing market conditions.”
This comes as UAC rewarded
shareholders with N1.92 billion dividend payout, from the group Profit After
Tax (PAT) of N5.67billion achieved at the close of the business year in 2016,
representing 10 per cent rise over N5.16billin recorded in 2015. “In view of the Company’s performance, the board is
recommending for your approval a dividend of 100kobo per ordinary share in
respect of the 2016 financial year,” he said.
Amid harsh operating environment,
the company posted group revenue of N84.61billion an increase of 15 per cent compared
to N73.77 billion achieved in the previous year. Agbor attributed the improved
performance to cost optimisation initiatives implemented during the year under
review, with innovation in key categories and extensive retail market
expansion, adding that these helped to offset further deterioration
of margins during the year.
Commenting on the outlook for the
year, he said the Group will focus on consolidating the 2016 initiatives,
support growth and working capital through equity calls, unlock value through
the realisation of under-performing assets, and restructure the route to market
architecture across the group this year. (Guardian)
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