FAN Milk Plc considers public issue


February 13, 2007/ Punch



<P>FAN Milk of Nigeria Plc said it plans to raise its revenue from the N4.8bn it recorded in 2006 to N6bn in 2007.</P>


<P>Managing Director, FAN Milk, Mr. Jens Mollenbach, who disclosed this at a company ceremony to reward its high-performing dealers in Abuja on Tuesday said the company also plans to inject N1bn fresh funds to renew and expand its facilities in the current year.</P>
<P>According to him, the N1bn investment fund would be raised through rights issue to the companyÃÃâ€


’¢â‚¬â„¢s existing 270 shareholders.</P>
<P>Mollenbach said although the shareholders have agreed to raise the funding requirement, the company was awaiting the approval of the Securities and Exchange Commission.</P>


<P>To the dealers of the company who wanted to be admitted into shareholding structure through public listing of its shares, the FAN helmsman said they needed to wait for the decision of the board on the matter.</P>


<P>He explained that the proceeds from the rights issue would be invested mainly in the upgrade and expansion of power, water and freezing facilities.</P>
<P>While the company’s storage facility in Kano is being upgraded, a new one would be installed in the headquarters plant in Ibadan. He added that the company would, in the next dry season, install a new plant to double its production capacity and enable it meet the demands of customers. Mollenbach explained that the company could not possibly take immediate advantage of high demand because it takes a minimum of four months to install new production facilities.<SPAN style=\"FONT-SIZE: 10pt; COLOR: #dcdcdc\"><I>- Punch</I></SPAN></P>

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