UAC of Nigeria Plc, a leading diversified conglomerate in Nigeria, has announced plans to acquire majority equity stakeholding in Portland Paints and Products Plc.

The company has thus signed a Memorandum of Understanding with Portland Paints, which is a leading player in the paints manufacturing and sanitary wares sales in Nigeria.

A statement by UACN on Monday described the acquisition as part of the company’s strategy towards building sustainable brands and promoting long-term value to stakeholders.

It said, “The proposed transaction is driven by potential synergies between the two companies and is in line with UACN’s strategy of building a portfolio of brands and businesses geared to the growth segments of the Nigerian economy, and partnerships that deliver long-term value to the company and its stakeholders.

“The transaction will allow Portland Paints to leverage the relative strengths of UACN and yield considerable benefit to stakeholders in both companies.”

According to the statement, both companies, which had established presence in the Nigerian paint industry, are uniquely positioned to partner on deepening the presence of both companies in existing markets, achieve scope and scale economies in procurement, production and distribution.

The statement, however, urged shareholders to be cautious in their transactions pending final announcement on the transaction.

It said, “Shareholders are advised to exercise caution when dealing in UACN shares until a final announcement is made.

“The proposed transaction is subject to the approvals of the Securities and Exchange Commission and the Nigerian Stock Exchange. Further announcements will be made as material events occur.”

Meanwhile equity trading on the NSE continued on an upward trend on Monday, with major indicators recording significant appreciation.

The market capitalisation of the listed equities was up by 1.04 per cent from N7.259tn recorded last Friday, to close at N7.335tn on Monday.

Similarly, the NSE’s All-Share Index rose by 1.04 per cent or 237.08 basis points to close at 22,978.14 points, up from 22,741.06 points at which it closed last week.

Source: Punch/Udeme Ekwere