Union Dicon Salt Plc says it has started a restructuring process aimed at turning the company’s operations around and making it more profitable.

A statement from the company said as part of the process, Mr. Bex Nwawudu and Mr. Chuka Mordi, had been appointed as co-Managing Directors of the company, with Col. Henry Mgbemena (Retd), who was the acting MD, returning to his former position as Executive Director, Production.

Nwawudu and Mordi are both directors of Lagos-based private equity and investment management firm, CBO Capital, which became the core investor of UDS late last year.

Nwawudu was quoted as saying the company’s new management was determined to make agro-allied company surpass its objectives of operational turn-around, repositioned production, and increased delivery capacity.

He said, “A key element of our investment philosophy is that we transform UDS into a world class Agribusiness and food processing company through access to funds, projects and partnerships that yield accelerated, yet sustainable and consistent growth.

“Nigeria and indeed West Africa is crying out for increased local food production and sector value-add, Union Dicon is investing in, and operating projects that deliver this within the region, at the right quality and price for the African consumer.”

According to the statement, in the last quarter of 2013, CBO Capital Partners became a significant shareholder in Union Dicon Salt after it acquired 15 per cent of the firm. The company was also awarded a broad management contract and option to purchase a controlling stake in the company.

In November, it was reported that CBO Capital had acquired 41 million ordinary shares of UDS and also had an option to purchase a further 240,000,000 ordinary shares for a consideration of N3.36bn.

 “The decision to bring in a youthful, but experienced management team that can define, execute and finance the transformational growth plan has been welcomed by the equity market. Union Dicon Salt Plc will be announcing a series of major developments in Q1 2014,” the statement added.

Established in 1984, Union Dicon Salt Plc is listed in the Consumer Goods Sector of the Nigerian Stock Exchange. On the other hand, CBO Capital was established in 2009 with the aim of servicing and supporting business growth in Africa. According to the statement, the firm has executed over $175m of financing mandates and exits over the last three years.

Source: Punch (by Simon Ejembi)