Chemical Allied Products Plc (CAP) has been authorised to receive all the assets, liabilities, product offerings, and property rights of Portland Paints and Products Nigeria Plc.
This was one of the resolutions passed at the court-ordered meeting of the Shareholders of CAP Plc which held on Thursday, February 18, 2021, at Radisson Blu Hotel in Lagos
According to the statement which contains the resolutions made at the court-ordered meeting issued by the Company Secretary, Ayomipo Wey, , “Chemical Allied Products Plc “is hereby authorised to enter into a merger, and business consolidation with Portland Paints such that, upon an order of the Court, all assets, liabilities of Portland Paints including but not limited to real property, intellectual property rights, permits, credits, allowances, equipment and machinery, plant, fixtures and fittings, motor vehicles and businesses as at the Effective Date shall be transferred to the Company without further act or deed by the parties”.
- In view of the merger with Portland Paints, and to give effect to the full completion of the Scheme Merger, CAP Plc is hereby authorized to pay Cash Consideration of N2.90 to the Scheme Shareholders for each ordinary share of N0.50 held in Portland Paints as at close of business on the Terminal Date.
- Upon the Scheme becoming effective, the CAP Plc is hereby authorized to allot up to 99,176,942 shares to Shareholders of Portland Paints Plc who elect to receive the Share Consideration, as the shareholders hereby waive their pre-emptive rights to any such shares.
- According to a statement made by the Managing Director of CAP Plc, David Wright, the post-merger entity of Chemical Allied Products Plc and Portland Paints and Products Nigeria Plc would be the largest player in the Nigerian paints market by market share.
- The “Enlarged CAP” as it’s fondly called is expected to dominate the Nigerian Market as the largest player in the paints and decorative industry, as the entity is expected to float an enlarged product portfolio with strong brands, and a rich product mix of CAP and Portland Paints in the standard, premium, industrial and marine/protective segments.
- Hence, with a formidable product portfolio, the entity will leverage the strength of powerful brands like Dulux, Sandtex, Caplux and Hempel, as the “Enlarged CAP” will command a diversified product range across the decorative and marine segments.
- Upon the completion of the merger, the “Enlarged CAP” is expected to have an estimated market share of 14.9%, with a product portfolio which cuts across the Decorative, Industrial, Marine and Protective segments, with 26 product offerings in total.
- These product offerings will be distributed across 91 stores across 32 states in the country, as the enlarged entity will leverage the benefits of a wider distribution network.