A total of 800 million shares were added to the outstanding shares of Livestock Feeds Plc following a successful placing that made UAC of Nigeria Plc a majority shareholder in the company.

The shares were listed by the Nigerian Stock Exchange (NSE) last week. UAC of Nigeria recently said it had acquired 51 per cent stake   of Livestock Feeds Plc, which is  one of the leading animal feeds producers in the country.

Prior to the special placing, UACN had acquired over 11 per cent of the company’s share on the floors of the NSE. The Group Managing Director/Chief Executive Officer of UACN, Mr. Larry Ettah,  had said the  acquisition  was  strategic  and industry-defining .

“The deal 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.”        
                                       
Ettah noted that the deal will enhance UACN’s   response to demand in the industry and provides it with an immediate opportunity to diversify its  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,” the UACN boss declared.

Stock dealers said the acquisition was a good transaction that would benefit the shareholders of both firms.

UACN is the leader in the conglomerates subsector of the exchange, its shares closed at N56 per share last Friday, while it has outperformed the NSE All-Share Index having appreciated by 33 per cent so far this year. The ASI has recorded a growth of 18 per cent.

Source: Thisday (by Goddy Egene)