- Shareholders Seek UAC Water Subsidiary’s Liquidation
Shareholders of Warm Spring Waters Nigeria Limited, a 76 per cent subsidiary of UAC Nigeria Plc, have moved to liquidate the water arm of the company on grounds of poor corporate performance.
They took the decision at a company meeting held on February 6, 2018, where it was decided that a liquidator be appointed to wind up the affairs of the company and distribute its assets, UAC explained in a letter sent to the Nigerian Stock Exchange on Thursday signed by its Company Secretary/Legal Adviser, Godwin Samuel.
Warm Springs Waters, which produces the premium spring water under the ‘Gossy’ label, is based in Ikogosi-Ekiti.
The company was promoted in 2002 by UAC, the Ekiti State Government, Ikogosi-Ekiti community and some private investors.
In the letter, UAC explained, “Since it commenced commercial production in 2003, the company has been delivering weak operational performance due to problems associated with the rural location of the plant at the source of the spring and associated logistics challenges, 100 per cent reliance on company-generated power and difficult operating environment.
“The shareholders of the company at a meeting held on February 6, 2018 resolved to appoint a liquidator to wind up the affairs of the company and distribute its assets.”
According to UAC, the contribution of the company to the group’s results is less that 0ne per cent as it delivered a turnover of N369m and loss before tax of N78m in the nine-month ended September 30, 2017.