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CAP Plc And Portland Paints Plc Engage Stakeholders Via Nigerian Stock Exchange’s Facts Behind The Merger

Date 10/02/2021

Chemical and Allied Products (CAP) Plc and Portland Paints and Products Nigeria (Portland Paints) Plc leveraged The Nigerian Stock Exchange’s (NSE or The Exchange) Facts Behind the Merger to engage stakeholders on Tuesday, 9 February 2021. The merger was also commemorated with the NSE’s digital Closing Gong Ceremony.

CAP and Portland Paints – both subsidiaries of UAC of Nigeria – recently secured the approval of shareholders to merge both businesses. By combining both companies, CAP Plc, being the resulting entity will expectedly benefit from the diversified revenue base, economies of scale and operational efficiencies that this merger presents.

Speaking at the event, the Divisional Head, Listings Business, NSE, Mr. Olumide Bolumole stated, “At the NSE, we continue to provide a platform to support our clients in meeting their strategic business objectives and it is our delight to see listed companies take full advantage of the NSE’s products and services. I must, therefore, commend the Board and Management of CAP Plc and Portland Paint Plc for utilising this platform to communicate to their stakeholders and inform the market of their strategic and operational developments.  We believe that this combination presents a compelling opportunity to create significant value for the shareholders of CAP Plc and also achieve the company’s strategic growth objectives.”

On his part, the Managing Director (MD), CAP Plc, Mr. David Wright thanked the Management of The Exchange and capital market stakeholders present for the opportunity to share insights on the milestone achievement for both companies. The MD, Portland Paint Plc, Ms. Bolarin Okunowo went ahead to commend The Exchange for its resilience in responding to the limitations occasioned by the COVID-19 pandemic and embracing virtual platforms that allow Issuers to continue to engage with the market.

The presentation of the facts behind the merger was handled by the MDs of CAP Plc and Portland Paints Plc alongside, Dr. Gbadebo Adenrele, Director & Head, Investment Banking, Vetiva Capital Management Limited and Ms. Kemi Awodein, Managing Director, Investment Banking, Chapel Hill Denham. It was highlighted that CAP and Portland Paints currently rank No. 2 and No. 4 in the Nigerian paints market, respectively and following the completion of the merger, the enlarged CAP will become the largest player in the Nigerian paints market by market share. The transaction is expected to close by Q1:2021.