By Gbenga Agbana

Friday, 17 Dec 2010

The Nigerian Bottling Company Plc, sole franchise bottlers of Coca-Cola products in the country, announced on Thursday that it would invest N45bn in its operations in the next three years.

A statement from the company said the fund would be channeled into infrastructure modernisation, supply chain capacity enhancement, human capital development and expanded corporate social responsibility initiatives in order to deepen its operations in the country.

”Nigeria will be the most important emerging economy in the world during the next decade. We are determined to unlock the significant potential of NBC and play a leading role in the transformation of the Nigerian economy,” the company‘s Chief Executive Officer, Mr. Jim Lafferty, said in the statement.

According to the statement, the financing and execution of the investment plan requires reinvestment of all cash flows generated by the business in the foreseeable future, a restructuring of the share capital of the company and total commitment of management resources.

The Chairman of the board of directors, Mr. Segun Akpata also said, ”NBC has a strong heritage in Nigeria and formed the foundation of Coca-Cola Hellenic, the largest Coca-Cola bottling group in the world. Our investment plan will secure a leading role for NBC in the Coca-Cola group in Africa and globally.”

To this effect, the board of directors resolved on Wednesday, to consider undertaking a scheme of arrangement between the company and its members, involving a cancellation of part of its share capital, such that it would become a wholly owned subsidiary of its majority shareholder, Coca-Cola Hellenic Bottling Company S. A.

The statement added, ”The restructuring of its share capital will ensure NBC fully utilises the financing resources of its parent group, thus reducing both its cost of capital and out-of-pocket expenses linked to multiple exchange listings, whilst reducing complexity in the business. This, in turn, helps facilitate the increased investment into the business.

”In practical terms, this means the company would de-list from the Daily Official List of the Nigerian Stock Exchange. Assuming ratification of this plan from the board of directors and 75 per cent of shareholders, the company will then be re-registered as a private company along the lines of many of Nigeria‘s most successful corporations.

Source: Punch