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Berger Paints N543m Rights Issue Opens

Berger Paints 72.5 million ordinary issues of 50k per share at N7.50 to its existing shareholders has opened today across the country following the completion board meeting held in Lagos recently.

The rights are being offered on the basis of one new share for every three held by members as at  May 31, 2013

The net proceeds of the offer amounting to N543.42 million will enable the leading paints and allied company to finance the modernization its manufacturing operations.

Chairman, Berger Paints Nigeria Plc, Mr. Clement Olowokande, said the net proceeds of the rights issue estimated at N521.71 million would be used to finance the modernisation of the company’s factory operations.

According to him, the modernisation was the main thrust of a strategic plan to ensure that the company continues to operate at the forefront of paint technology by replacing its aging manufacturing infrastructure.

He said the modernisation of the company’s factory operations would lead to improved efficiency that will positively impact on turnover and profitability.


Olowokande said that the company also plans to commit substantial investments on major improvements of its distribution channels.

He said the company has taken several initiatives and entered new partnership that would greatly enhance its products and services in the Nigerian paint and coating industry in the period ahead.

He noted that Berger Paints has always been the standard-setter in the industry with enviable records of pioneering wide range of popular special products.

He said he was confident the company would record significant growth and improvements in its operations in the years ahead in order to create better value for shareholders.
He urged all shareholders to participate fully in the rights issue to ensure they continue to maintain their positions in the company.

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