New Telegraph

NSE: CAP, Portland’s business merger to create value

The Nigerian Stock Exchange (NSE) has said that it expects the business combination between CAP Plc and Portland Paints Plc to create value for the shareholders. 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 Facts Behind the Merger presentation on the floor of the exchange yesterday, 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.

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