August 11, 2010

 

Strong indications have emerged that the ownership change in DN Meyer Plc may be probed by the Securities and Exchange Commission (SEC), following petitions by some aggrieved stakeholders of the company.

 

Citiprops Limited recently acquired the 40 per cent equity previously owned by ACIMS Limited to become the new core investor. This development saw some changes on the board, with Mr. Dayo Lawuyi resigning as a director and chairman of the company.

 

He was replaced by Sir Oluremi Omotoso as a director and chairman. Also, Adeola Omosebi was appointed Executive Director, while Mr. Kayode Falowo was appointed a non-executive director.

 

However, the core investor effected more management changes that saw the exit of the former Managing Director of the paint-making company, Mr. Bola Olayinka. He has since been replaced by Mr. Tola Osinkiyesi, who was Executive Director in charge of business development.

 

THISDAY checks revealed that peeved by some of the changes the core investor is making, some stakeholders have petitioned SEC and labour organisations, asking them to come in and save the company from extinction.

 

“Some people are not happy the way the shares were acquired. In the first place, the acquisition arose from inability to settle financial obligation. If the due process is followed, I believe the transaction would be faulted. Besides, the core investor appears to have abandoned its earlier promises and is now sacking people indiscriminately,” a source said.

 

It was gathered that if the situation is not checked, the company’s financial position may worsen. DN Meyer posted a loss of N627 million for the year ended December 31, 2009, compared with a loss of N296 million in 2008.

 

Meanwhile, directors of the company are asking the shareholders to approve a change in the name of the company from DN Meyer Plc to Meyer Plc at the company’s Annual General Meeting (AGM) scheduled to hold in Lagos on August 24, 2010. The directors are also seeking the approval of shareholders to make a Rights Issue of 292 million shares.

 

DN Meyer has been operating in Nigeria since 1940 and was formerly known as Hagemeyer Nigeria Plc. In 1994, about 68 per cent of the company’s issued share capital was acquired by Dunlop Nigeria Plc. 

 

The acquisition by Dunlop led to the change of the corporate and brand name to DN Meyer Plc and Meyer paints respectively. But the acquisition by ACIMS Limited changed the ownership structure of the company before the latest acquisition by Citiprops Limited.

 

Source: Thisday