UACN and CAP dispel takeover reports and remove them from NGX

UAC of Nigeria Plc (UACN) and Chemical and Allied Products Plc (CAP) have denied alleged media reports on UAC’s potential acquisition of shares held by CAP’s minority shareholders and subsequent delisting of CAP from the Nigerian Exchange Limited NGX.

Both UAC and CAP in separate statement for NGX stated that it does not conduct such activities.

Instead, they emphasized their commitment to business development, delivering value to stakeholders and contributing to the Nigerian economy.

The statement reads:

  • “Our attention was drawn to the online publication of The Guardian Newspaper dated April 26, 2024, which refers to the potential acquisition by UAC of Nigeria PLC (“UAC”) of shares held by minority shareholders of Chemical and Allied Products PLC (“CAP”) and subsequent delisting of CAP from the Nigerian Exchange Limited.
  • Currently, ZAK and WPR do not carry out the above activities. UAC and CAP remain committed to growing their businesses to deliver value to stakeholders and continue to make broad contributions to the Nigerian economy.”

Chemical and Allied Products (CAP) Plc and Portland Paints and Products Nigeria (PPPN) Plc, both UACN subsidiaries, have merged three years after shareholder approval.

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Financial results of the CAP

Information from CAP’s financial statements reveals that UACN’s parent company holds approximately 57.85% of its total shares. No other shareholder owns more than 5% of the company.

According to the audited financial results submitted to the Nigerian Exchange Limited, CAP recorded revenues of N23.9 billion for the financial year ended December 31, 2023.

  • Revenue increased by 24% compared to N14.2 billion in the same period of 2022.
  • The company is one of the crown jewels of the UACN conglomerate and has consistently delivered profitability growth.
  • The company’s operating profit also increased by 5% ahead of FY2022 to N3.3 billion, while pre-tax profit stood at N3.8 billion, up 10% from N3.4 billion in FY2022. The total profit for the year was N2. 5 billion, representing a 6% increase from the N2.4 billion posted last year.
  • The Managing Director of Chemical and Allied Products Plc, Bolarin Okunowo, commenting on the results, stated that the growth recorded by the company during the financial year under review was achieved despite numerous political and macroeconomic challenges that occurred throughout the year.

CAP Plc is up 48% year-to-date, outperforming the NGX All Share Index, making it one of the best-performing companies on the stock exchange.