By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-Presco Plc on Tuesday said it’s seeking to raise up to 3 billion naira by way of rights issue to be used for debt reduction and foreign exchange exposure, the company said in a notice to the Nigerian Stock Exchange (NSE).

This is coming on the heels of the shareholders’ approval at the annual general meeting (AGM) held on July 22, 2014.

Uday Pilani, managing director (MD) of the company, said its directors have decided to undertake the rights issue to give the firm financial flexibility and reorganise its capital structure. ‘’The net proceeds of the rights issue will be used to reduce the company’s debt and foreign exchange exposure,’’ Pilani affirmed.

Also,  Presco said its directors believe that the proposed rights issue presents an excellent opportunity for existing shareholders to increase their investment in the company, which has consistently recorded impressive results and also paid dividends to its shareholders over the years.