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Shareholders approve increase in Dunlops share capital


April 09, 2007/Punch




Shareholders of Dunlop Nigeria Plc have approved an increase in the companys authorised share capital from N1.5bn to N2.7bn to absorb the excess money from the public offer.


Following the oversubscription in the 1.5bn shares for public offering at N2.50 per share, the directors asked the shareholders to increase the share capital. The shareholders unanimously gave their approval to the request at an extraordinary general meeting in Lagos on Wednesday.


They also authorised the directors to exercise all powers of the company to issue and allot shares to subscribers of the public offer in any acceptable manner it deemed fit.


Besides, the directors were authorised to take all steps necessary to obtain consent of the Securities and Exchange Commission, the Nigerian Stock Exchange and any other regulatory body, to allot additional shares in any number over the number of shares offered for subscription by the company in the offer, subject to the authorised share capital of the company.


Before the approval, the shareholders, however, urged the board of directors to ensure that the money was utilised in a way that would improve the fortunes of the company and pay dividend as soon as possible.


A shareholder, Mr. Aderemi Oyepeju, tasked the directors to ensure dividend is paid this year. He said: Give us something in 2008 in terms of returns on investment. We deserve it.”


The President of Nigeria Shareholders Solidarity Association, Chief Akintunde Asalu, said that the board underrated the confidence investors reposed in the company, adding that the share capital should have been increased before the offer.


However, he asked the directors not to betray the confidence, saying that the board should see to how the shareholders could be compensated through a dividend.


The Chairman, Mr. Dapo Lawuyi, said the offer was grossly oversubscribed, disclosing that while the public offer was oversubscribed by 90 per cent, Rights Issue was over subscribed by 49 per cent. –

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