UAC of Nigeria Plc, a diversified conglomerate in the country, has announced the acquisition of majority stake in Livestock Feeds Plc.

Livestock Feeds, a company that produces animal feeds, is quoted in the agricultural sub-sector of the Nigerian Stock Exchange’s Daily Official List.

A statement by UACN on Friday explained that it now owned 51 per cent share in Livestock Feeds.

It said, “The transaction has been concluded via a special placement and places UACN as the majority shareholder with a shareholding of over 51 per cent in Livestock, having previously acquired in excess of 11 per cent of the company’s share capital through secondary market trade.

“The transaction has received the required statutory approvals.”

Commenting on the rationale for the transaction, UACN’s Group Managing Director, Mr. Larry Ettah, said the acquisition would go a long way to strengthen the company’s activities and position if for further growth.

He said, “This strategic acquisition is industry-defining and underscores our strategy to position UACN Group as a portfolio of companies with exposure to the growth segments of the Nigerian economy.

“The addition of Livestock Feeds to our business brings our combined share in the Nigerian animal feeds market to 32 per cent. It enhances our response to demand in the industry and provides us with an immediate opportunity to diversify our manufacturing and sales locations.

“Further benefits will accrue from the attractive synergies in the supply chain as well as in distribution. We are delighted by the prospect of these outcomes and the value they will add for shareholders of UAC and Livestock Feeds.”

Both companies had signed a Memorandum of Understanding on synergies last year.

In the formal notification to the NSE, UACN said the proposed transaction would lead to significant development of the agro-allied business industry, a key pivot of Nigeria’s drive for enhanced agricultural sector contribution to the national economy.

UACN stressed that its investment in Livestock Feeds was driven by potential synergies between the two companies in the animal feeds industry.

Source: Punch (By Udeme Ekwere)