The arrangement for the special placement of 48 million ordinary shares of 50 kobo each at N1 per share by Premier Paints Plc to Clover Global Resources Limited has been completed.

The offer document, made available at the company’s Completion Board Meeting on Monday, showed that the company had received the necessary approval to proceed with the special placement.

It stated that the placement was being undertaken for Clover Global to acquire majority holding in the company to enable the company acquire new paints manufacturing plants as well as enhance its working capital requirements.

Clover Global had recently acquired 20 per cent of the equities of Premier Paints, with the hope of increasing the tally to 51 per cent, which would make Clover the single largest shareholder.

The Board of Directors had earlier informed shareholders at the company’s last annual general meeting that it had been able to source for another core investor to help boost the company’s activities, which is hoped upon to help salvage the company from going under, as speculated by the auditor. Clover Global Resources Limited, the new core investor, has acquired.

Speaking on the occasion of the signing of the document, the Chairman, Premier Paints, Chief Ogo-Oluwa Bankole, said that the proceeds of the offer would be utilised as stated in the Placement Memorandum.

He added that the company had appointed Mainstreet Bank Capital Limited as the Issuing House to the placement, while the necessary approval letters from the Securities and Exchange Commission as well as the Nigerian Stock Exchange had also been obtained.

He said, “The offer would open on March 8, and close on the same day, and the shares would be payable in full on application except otherwise directed by SEC.

“The ordinary shares of the company, as at December 31, 2010, has been set out in the placement and written consents have been received from the directors and other parties referred to in the placement.”

The representative of the Issuing House and Head of Capital Market Unit, Mainstreet Capital Limited, Mr. Mamman Bukar, expressed optimism in the offer, saying the offer had good prospects.

Meanwhile, equity trading activities on the NSE closed on a positive note on Tuesday, with major indicators rising marginally.

The NSE All-Share Index rose by 1.5 per cent or 307.26 basis points from 20,619.05 points to close at 20,926.31 points, while the market capitalisation of the listed equities rose by 1.5 per cent to close at N6.60tn.

The positive trend exhibited by the indicators was attributed to the gains recorded in the share prices of stocks, such as Dangote Sugar, PZ Cussons and Guaranty Trust Bank Plc.

Source: Punch