The shares of
The boards of directors of
Although the merger is still subject to regulatory approvals, some discerning investors are increasing their stake in PPPN so as to be shareholders of
According to companies, the decision to pursue the merger is driven by the strategic objectives of the boards to drive growth and expansion within the Nigerian and African markets.
The merger will involve the transfer of all PPPN's assets, liabilities and business undertakings including real property and intellectual property rights to CAP. In consideration for the transfer, CAP is offering shareholders of Portland Paints a choice to receive N2.90 cash every Portland Paints share held or one new ordinary share of CAP, credited as fully-paid up for every eight Portland Paints shares held.
Commenting on the merger, Managing Director of
On his part, Managing Director of Portland Paints,
They noted that CAP and PPPN play in distinct segments, and the enlarged CAP will have a broader portfolio covering the top-end/premium decorative segment, the mid-market decorative segments as well as the industrial segment (in particular marine and protective coatings).
They believe that it would provide customers access to a broader product portfolio and a wider range of value options to meet their needs.
"The combination of CAP and PPPN will create a formidable paints and coatings company that will be strategically positioned across segments as a result of its combined brand portfolio," they added.
They explained that the merger will be executed by way of a Scheme of Merger in accordance with Section 711 of the Companies and Allied Matters Act, 2020 and other applicable laws, rules and regulations.
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