By Usman Aliyu
Shareholders of Austin Laz and Company Plc have approved plans to raise N2.1 billion in fresh capital to finance expansion, strengthen competitiveness and accelerate the company’s diversification.
The company seeks to diversify into new technology-driven manufacturing businesses.
The approval was granted at an Extraordinary General Meeting (EGM) held at the company’s corporate headquarters in Benin City.
The shareholders in the resolutions released on Sunday in Benin, unanimously authorised the Board of Directors to raise the additional capital through a private placement, business combination, merger or a hybrid arrangement.
The shareholders also empowered the board to utilise the company’s unissued share capital to issue new ordinary shares at N5 per share to one or more investors in tranches.
The News Agency of Nigeria (NAN) reports that the move is part of a broader restructuring strategy aimed at repositioning the indigenous manufacturing company for long-term growth and improved profitability.
Under the resolutions adopted at the meeting, the board was authorised to finalise the terms, timeline and investor selection process for the transaction.
The board was also empowered to appoint professional advisers, execute all necessary agreements and obtain approvals from regulatory agencies, including the Securities and Exchange Commission (SEC) and Nigerian Exchange Limited (NGX).
In addition, the company secretary was mandated to undertake all necessary filings with the Corporate Affairs Commission (CAC), including amendments to the company’s Memorandum and Articles of Association to reflect changes in its share capital structure.
The shareholders also ratified all preliminary steps already taken by the board regarding the proposed capital raise.
Speaking after the resolutions were passed, Mr Christopher Itua, Chairman of the Board of Directors, described the development as a strategic step toward transforming the company into one of Nigeria’s leading industrial players.
Represented by board member Nyemike Ogbechie, Itua said the company had undertaken deliberate restructuring to improve productivity and competitiveness within Nigeria’s industrial sector.
He said core investors had already been identified to inject expertise, equipment and finances into the company.
“We have been able to strategise and come to the conclusion that the company needed to be restructured for optimal productivity and competitiveness in the Nigerian industrial sector.
“In restructuring, core investors have been identified who are going to bring in expertise, equipment, finances and help turn around the establishment,” he said.
Itua expressed optimism that the investment would improve profitability and ultimately translate into higher returns for shareholders.
Also speaking, Dr Austin Lazarus Asimonye, Managing Director and Chief Executive Officer of the company, described the resolutions as a major turning point in the company’s growth trajectory.
According to him, the capital raise is intended to finance strategic investments and acquisitions that would significantly expand the company’s business portfolio.
“The Extraordinary General Meeting of today is meant to authorise the board to use the capital for an investment or merger. The capital is for the company to buy into another flourishing business.
“We are very hopeful that the company is going to turn around greatly, which will bring joy to the investors, to the shareholders and to the country at large,” he said.
Asimonye said the company was positioning itself as a technology-driven manufacturing enterprise.
“It is a technologically driven company and all that is needed for a company is how to explore and exploit the technology of the company.
“The business we’re investing into again is another technology-laden company with great potential. It’s a new technology we’re buying into that produces building materials.
“Allied building materials such as glazed roofing tiles and so many other allied building material products. It’s a new innovation different from what has been.
“We’re buying into a new technology, a new business. We’re taking a majority share in the business, so it will become a subsidiary of the Austin Laz company,” he said.
Austin Laz and Company Plc is one of Nigeria’s indigenous manufacturing companies with a diversified product portfolio.
The company currently produces ice block machines, insulated coolers popularly known as Austin Laz’s First Lady Cooler, thermoelectric coolers and warmers, PVC elbows and aluminium long-span roofing sheets.
It is also diversifying into the production of air conditioners, refrigerators, freezing systems and PVC ceiling panels, while expanding its operations into PET recycling for the production of flakes for local and international markets.
The company has also commenced the production of glazed roofing tiles and other allied building material products as part of its diversification strategy.
The News Agency of Nigeria (NAN) reports thF Austin Laz and Company was incorporated as a privately owned company in 1982, converted to a public limited liability company in 2011 and listed on the Nigerian Stock Exchange in 2012. (NAN) (www.nannews.ng)
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Edited by Chioma Ugboma