Berger Paints Shops For N543m From Existing Shareholders

Filed in Business by on August 5, 2013

Berger-Paints-Logo-4Paint making firm, Berger Paints Nigeria Plc,   is   shopping for more funds from its existing shareholders through a rights issue.
Directors of the company and professional parties in the offer met last week to sign the deal for the fund raising exercise.
Specifically, the company will be offering 72.5 million ordinary issues of 50k per share at N7.50 to its existing shareholders.
The net proceeds of the offer amounting to N543.42 million will enable the paints and allied company to finance the modernisation its manufacturing operations.

At the completion board meeting in Lagos, members of the board of directors, issuing houses to the rights issue, stockbrokers to the issue and other parties signed the final documents of the rights issue in the presence of officials of Securities and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE).
The rights issue, which will open on August 20, has been pre-allotted on the basis of one new ordinary share for every three ordinary shares held as at May 31, 2013.
Chairman of Berger Paints Nigeria Plc., Mr. Clement Olowokande, said the net proceeds of the rights issue estimated at N521.71 million would be used to finance the modernisation of the company’s factory operations.

He said the modernisation was the main thrust of a strategic plan to ensure the company continued to operate at the forefront of paint technology by replacing its aging manufacturing infrastructure.
According to Olowokande, the modernisation of the company’s factory operations would lead to improved efficiency that will positively impact on turnover and profitability.

He noted the company also planned to commit substantial investments on major improvements of its distribution channels.
The chairman explained the company had taken several initiatives and entered new partnership that would greatly enhance its products and services in the Nigerian paint and coating industry in the period ahead.
Olowokande, who urged all shareholders to participate fully in the rights issue to ensure they continue to maintain their positions in the company, stressed that Berger Paints had always been the standard-setter in the industry with enviable records of pioneering wide range of popular special products.

He said he was confident the company would record significant growth and improvements in its operations in the years ahead in order to create better value for shareholders.

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