Shareholders of Interlinked Technologies Plc have been called upon to participate in the ongoing right offer, which opened on January 11, 2010. Mr. Olusegun Layode, the company's managing director, who spoke with newsmen in Lagos recently, said that the company needed fresh funds to enable it play actively in its niche business of electrical and telecom wire manufacturing.
He stated that the right offer was part of a combined offer employed towards repositioning the company to achieve its strategic initiatives, especially its business expansion exercise. According to Layode, the expansion would involve pursuing the new areas of business opening up in the energy, power and technology sectors of the Nigerian economy.
The company is hoping to net a total of N972, 531,037.44 from offering 188,800,904 ordinary shares to existing shareholders through a provisional allotment of four new ordinary shares of 50 kobo each for every one, ordinary share held at N3.50 per share. The offering price is discounted by N1.65 or 47 per cent compared with the current market value of N5.15 per share.
Layode encouraged existing shareholders who might not be able to take the offer to take advantage of the right trading window offer on the Nigerian Stock Exchange (NSE) in order not to loose out totally. He assured investors of getting dividend by the end of the 2011 financial year, stressing that the Board of Directors of the company took the conservative position in order to allow the fresh funds being raised to work for the shareholders. He stated that it would be too unfair to promise and fail.
Prior to the on-going right issue, the company had concluded a successful special placement of 140,900,000 ordinary shares of 50 kobo each late in December 2009. The rights document revealed that the proceeds of the combined offer would be channelled to providing funds for the company's growth objective.
The sum of N335 million representing 37 per cent of the proceed is earmarked for working capital, while N237.5 million or 24 per cent, N225 million or 23 per cent and N155 million or 16 per cent is scheduled to be appropriated for acquisition of additional fixed assets which include renting of a new head office complex and the development of a new factory for its operations.