The shareholders approved a proposal of the board to raise fresh equity from existing shareholders on the basis of one new share for every three at the 53rd yearly general meeting held in Abuja, the Federal Capital Territory (FCT), on Tuesday.
About 30 per cent of the rights issue will be underwritten by underwriter(s). The shareholders also approved a dividend of 70 kobo per share.
The company yesterday also commissioned a N650 million building materials and related products shopping complex in Abuja, the Federal Capital Territory (FCT) as part of its diversification strategy as well as consolidate the transformation agenda of the Federal Government of providing housing for all Nigerians. The complex is located in the Wuse II District of the FCT and the income from the investment will have great impact on the company’s income in 2013.
Berger Paints reported a profit after tax (PAT) of N179.9 million on a turnover of N2.5 billion in 2012 as against a PAT of N227.8 million on a turnover of N2.6 billion in the corresponding period of 2011 despite the difficult operating environment that pervaded the 2012 fiscal year.
Earlier, in his statement, the chairman of the company, Mr. Clement Olowokande told the shareholders that Berger Paints has entered into partnership agreement with KCC Corporation of South Korea in a bid to enhance its product offering in the Nigerian paint and coating market in the next few months. KCC Corporation is one of the largest paints and chemical manufacturing companies in the world.
Olowokande said in order to maximise the full benefits of the anticipated improvement in the company’s product offering, the company would also commit substantial investment towards a major improvement in its present distributing channels in order to serve customers better.