By Ademola Alawiye

Monday, 20 Dec 2010

Shareholders of UAC Nigeria Plc have approved the sale and transfer of 49 per cent of the assets of UAC Food Limited to Tiger Brands Limited, a fast moving consumer goods company in South Africa.

The shareholders at the company‘s Extra Ordinary General Meeting in Lagos, on Friday, approved the restructuring of the company by transferring the assets and liabilities of UAC Foods and UAC Diaries Division of the company to Tiger Brands.

Speaking at the EGM, the National Coordinator, Independent Shareholders Association, Mr. Sunny Nwosu, said that the partnership would enhance a robust business diversification that would attract foreign direct investment and help create job opportunities in the country.

He added that it would also attract new skills and innovations to the business.

He, however, urged the management of the company to reach a favourable agreement in the negotiations and ensure that Tiger Brands injected more capital into the business instead of relying on what already existed.

He said, “I want us to tighten every agreement reached with Tiger Brand so that the company will not dump us. In doing this, shareholders should be carried along because we are partners in progress. I believe this arrangement is a right one, so we endorse the arrangement.”

The President, Nigerian Shareholders Solidarity Association, Mr. Gbadebo Olatokunbo, said that the collaboration would strengthen the market position of UAC Foods in readiness for the intense and growing local and international competition.

He noted that the company should protect other product brands, which had been in existence over the years.

In his address, the Chairman of the company, Senator Udoma Udoma, told shareholders that the decision to split the units was to enable each unit to optimally pursue market opportunities that would enhance profitability in the company.

He said, “After due consideration of your company‘s strategic objectives and the potential benefits of a joint venture, your directors are of the opinion that the most optimal means of growing the business and maximising shareholders’ value is to enter into proposed joint venture with Tiger Brand.

“We shall take all steps possible to ensure a fair, transparent and independently managed process of entering into the proposed joint venture with the ultimate objective of enhancing your company‘s capacity to take advantage of existing and emerging opportunities in the food and beverage industry in Nigeria.”

The Group Managing Director, UAC, Mr. Larry Ettah, pointed out that the partnership negotiation with Tiger Brands commenced in 2008.

He added that the company would conclude the partnership arrangement by the first quarter of next year.

 

Source: Punch