The management of Berger  Paints  Nigeria  Plc has finalised arrangements to raise N543.43m from its shareholders in a bid to modernise  its  manufacturing operations.

To achieve this, the company is offering 72.5 million ordinary issues of 50k per share at N7.50 to its existing shareholders.

According to the Chairman, Berger Paints Nigeria Plc, Mr. Clement Olowokande, the net proceeds of the rights issue estimated at N521.71m will be used to finance the modernisation of the company’s factory operations.

He said this in Lagos at the completion board meeting for the rights issue, where members of the board of directors, issuing houses to the rights issue, stockbrokers to the issue and other parties signed the final documents of the rights issue in the presence of officials of Securities and Exchange Commission and Nigerian Stock Exchange.

Following the completion board meeting, the company said an application list for the rights issue would be opened on August 20, 2013.It added that the rights issue was pre-allotted on the basis of one new ordinary share for every three ordinary shares held as at May 31, 2013.

Olowokande explained that the modernisation was the main part of a strategic plan to ensure that the company continued to maintain a leadership position when it comes to paint technology by replacing its aging facilities.

He added that the company also had plans to invest more funds in its distribution channels to boost the reach of its products.

In order to achieve these goals, and to strengthen its products and services, the chairman said Berger Paints was also entering into partnerships.

He said the company had taken several initiatives and entered new partnership.

He assured the shareholders that the company had been positioned to record significant growth in the coming years, thereby creating better value for them.

Source: Punch (by Simon Ejembi)