The Managing Director, May & Baker Nigeria Plc, Mr. Nnamdi Okafor, says the company needs new equity funds and is considering the option of raising the funds.

According to a statement on Monday, the funds will be used to support the company’s plan for long-term growth and reduce the high cost of funds, which has dragged the company’s profit down.

“We believe that this company needs new equity capital because the cost of funding is quite high,” Okafor said, adding, however, that the fundamentals of the company had improved significantly.

The statement said Okafor spoke when the management of the company led shareholders on a tour of May & Baker’s manufacturing complex in Ota, Ogun State.

He said the board of directors would decide on the means through which the funds would be raised and put the amount the company was seeking to between N2bn and N3bn.

Okafor, who assured the company’s shareholders that its future was bright, explained that it expected its products and processes to be certified by the World Health Organisation, presenting with global opportunities and increased returns.

He said, “We want to build a company that is strong, stable and globally relevant by setting up strong institutions and strong brands. We have launched May & Baker on the path of sustainable and profitable diversification.”

Some of the shareholders that spoke during the tour praised the company for establishing the factory, and promised to support it in its bid to raise new capital.

“We must do everything possible to ensure the growth of this investment; it belongs to all of us,” the National Coordinator, Independent Shareholders Association of Nigeria, Mr. Sunny Nwosu, said.

He added, “Without money, investment will not be able to grow. We need to support the management in recapitalising the company. Shareholders should also be patronising the products of all quoted companies because in that way, they will be able to grow and deliver better dividends and more jobs.”

Source: Punch (by Simon Ejembi)