Firm Unveils Plan for N3b Capital, Asset Sale

• Firm Unveils Plan for N3b Capital, Asset Sale

May & Baker Nigeria Plc plans to increase its authorised share capital to N3 billion through the creation of 2.2 billion ordinary shares of 50 kobo each. The company also plans to sell or lease out one of its properties as part of initiatives to free up capital.

Shareholders of the healthcare company are expected to pass special resolutions at the annual general meeting tomorrow to mandate the board of directors to increase the authorised share capital from N1.9 billion of 3.8 billion ordinary shares of 50 kobo each to N3 billion of 6.0 billion ordinary shares of 50 kobo each.

Shareholders are also expected to authorise the board of the company to sell or lease any of the company’s two properties located at Sapara Street, Ikeja.

Sources in the know said the increase in the authorised share capital is part of the plan for the pending supplementary share issue by the healthcare company. Shareholders had in 2014 empowered the company to raise N3.2 billion new equity capital.

Directors of the company said they had delayed the capital raising in order to extract the greatest value for the existing shareholders that had toiled to build the company and to ensure that new equity investments are in line with the strategic vision of future expansion and technical competences.

May & Baker Nigeria’s head office and manufacturing facility at Sapara Street, Ikeja, had become grossly underutilised after the healthcare company relocated its manufacturing operations to its World Health Organisation (WHO)-standard manufacturing complex in Ota, Ogun State.

Its Managing Director, Mr. Nnamdi Okafor, said the company is making the world-class manufacturing facility in Ota, Ogun State, the hub of pharmaceutical manufacturing in West Africa.

May & Baker Nigeria holds the majority equity stake of 51 per cent while the government holds 49 per cent equity stake in Biovaccines Nigeria Limited, the company set up for the purpose of May and Baker Nigeria-government partnership. local vaccine production is expected to save Nigeria a huge part of more than N10 billion yearly expenditure on vaccine importation, with such savings directly flowing to Biovaccines Nigeria Limited.