May & Baker Rights Issue Closes This Week
Nigeria’s first pharmaceutical company, May & Baker Nigeria Plc, on October 22, 2018 in its notification to the Nigerian Stock Exchange filed an application for a Rights Issue of 980 million ordinary shares of 50 kobo each at an offer price of N2.50 per share N2.45 billion in new equity funds.
However, the application list for the ongoing rights issue of the company is scheduled to close on Wednesday 28th 2018.
The firm said, in a statement, that the rights issue had been provisionally pre-allotted on the basis of one new ordinary share for every ordinary share held as at the close of business on September 4.
The firm said there were no indications on possible extension of the application period.
The Managing Director, May & Baker Nigeria, Mr Nnamdi Okafor, urged shareholders to take advantage of the rights issue to lock in their positions in order to be able to reap the full benefits of their investments in the company.
He said recent strategic investments and new growth initiatives being undertaken by the company would boost returns in the years ahead.
According to him, while the impact of the recapitalisation will become visible in the 2019 business year, the company will pay dividends for the 2018 business year on the old and new shares to be issued.
He stated that the net proceeds of the rights issue would be invested in some key projects, adding that N400 million would be used to finance part of the company’s equity in Biovaccines Nigeria Limited, the joint venture company for local vaccine production.
Okafor said, “Over N500m will be spent on capacity expansion for one of our cash cow products. The company will also use N400 million to offset part of its current loan portfolio, while N500 million will be invested in marketing and brand building.
“Shareholders are urged to pick up their rights as the company has bulging opportunities and great new potential that will ensure higher returns to investors.
“We derive our confidence mainly from the pedigree, performance track records and strategic plans of the company, which we believe should appeal to all discerning investors. The new funds will be used to strengthen their investments and make the company more profitable.”
Okafor noted that the company had been making strategic investments, some of which he identified as the construction of the anti-retroviral drugs manufacturing facility in Nigeria in 2006 and a World Health Organisation standard pharmaceutical manufacturing plant known as the Pharmacentre in 2011.
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