November 25, 2011
PROPOSAL by the board of Nigerian-German Chemical (NGC) Plc, to raise N4 billion fresh capital, was yesterday in Lagos endorsed by shareholders.
The shareholders also appealed to the Federal Government to put adequate measures in place to protect local industries.
Speaking during company’s yearly general meeting in Lagos yesterday, General Secretary, Independent Shareholders Association of Nigeria (ISAN), Adeleke Adebayo, advised relevant government agencies to “do more” to protect manufacturing sector.
According to him, for Nigeria to achieve its economic potentials and play competitively on the world stage, various challenges facing the industrial sector must be addressed.
He commended NGC for its efforts to keep the company running, despite various harsh economic conditions.
The National Coordinator, ISAN, Sir Sunny Nwosu, used the opportunity to advice the board and management of the company to pay strict attention to its Intravenous Fluid (IVF) manufacturing.
“IVF is an important turning point for the company. During construction, the environment should conform with World Health Organisation (WHO) requirement”, adding that the project is very sensitive and important.
While briefing shareholders, Chairman of the company, Babatunde Savage, said NGC has secured additional funds from Afrexim Bank to complete the establishment of its Intravenous Fluid manufacturing facilities.
“However, the company continues to labour under very high debts relative to its business turnover, a significant portion of these debts being tied to investment on the IVF project.
“Management is focused on a set business de-risking tactics, while remaining true to its business transformation. These entail a combination of restructuring of debts into long maturities. Management has also retained the services of financial advisers who have worked with to access long term options currently available including preferred equity options,” Savage said..
He said once the expansion is complete and patient capital is accessed, the company will be “poised to unlock its potential and reward shareholders robustly for their patience and support during these recent challenges. The company is blessed with a wide number of brands, which command strong market position”.
For the year ended March31, 2011, shareholders funds increased by eight per cent from N2.5 billion to N2.7 billion.
However, turnover dropped by 13 per cent from N3.7 billion for the 15 months period ended March 31 2010 to N3.2 billion for the 12 months period ended March 31, 2011.