UACN acquires 51% stake in Portland Paints
As part of efforts to increase its presence in key sectors of the economy, UAC of Nigeria Plc, Tuesday, said that it has completed the acquisition of 51 percent equity stake in Portland Paints and Products Plc.
In a notice filed with the Nigerian Stock Exchange, NSE, UACN said the acquisition resulted in take over of 204 million units of shares of Portland Paints at an acquisition price per share of N4.47.
It stated that the acquisition followed a Memorandum of Understanding signed with the paint manufacturer on July, 2012, while the deal was fully executed on 28th June 2013. UAC of Nigeria Plc stated that it was convinced that the acquisition of a controlling interest in Portland Paints & Products Plc would deepen its presence within Nigeria’s decorative paints industry, adding that Portland Paints would also benefit from UACN’s vast experience and operations in the Nigeria’s real estate and building materials sectors. UACN had explained that the proposed transaction was driven by potential synergies between the two companies, while saying that the move was in line with its strategy of building a portfolio of brands and businesses geared towards the growth of the Nigerian economy.
“The transaction will allow Portland Paints to leverage the relative strengths of UACN and yield considerable benefit to stakeholders in both companies. UACN and Portland Paints, with their established presence in the Nigerian paint industry, are uniquely positioned to partner on deepening the presence of both companies in existing markets, achieve scope and scale economies in procurement, production and distribution,” the company said.
It will be recalled that an approval to that effect had been secured from the Securities and Exchange Commission, SEC, and the shareholders of both companies in a separate court-ordered meeting.
The partnership is expected to deliver long-term value to the stakeholders.