Berger Paints To Raise N543.42m Through Ordinary Shares

Berger Paints Nigeria Plc has concluded plans to raise N543.42 million from the capital market through a Rights Issue of 72.5 million ordinary shares of 50k.

The company said this in a statement which was made available to newsmen  in Lagos over the weekend.

It said it would offer existing shareholders N7.50 for a unit of the shares.

The statement said that the net proceeds of N543.42 million would enable the paint manufacturing company to finance the modernisation of its operations.

It added that the Rights Issue, allotted on May 31, would be opened on August 20.

The  Chairman of the company, Mr Clement Olowokande said the net proceeds from the shares sale would increase activities in its factory.

Mr Olowokande said that the modernisation of the company’s operations was the main thrust to ensure that it continued to be in the forefront of paint technology in the country.

He stressed the need to replace the company’s aging infrastructure.

“The modernisation of our factory operations will lead to improved efficiency that will positively impact on our turnover and profitability.

“The proceeds from the shares will be used to purchase and install a water-based plant and a solvent-based plant from Spain,” he said.

Mr Olowokande said that the company also planned to substantially invest, to improve on the distribution of its produce.

He urged all the company’s shareholders to participate fully in the Rights Issue, to ensure that the company is able to maintain its position in the industry.