(by Ugonna Maduagufor) 

Livestock Feeds Plc will be offering a right issue share offer of N299.6 million from December 1, 2006 to December 26, 2006. The chairman Mr. Tade Robert made this known on Monday 27^th November 2006 during a completion board meeting convened for all professional parties and regulatory authorities that would endorse the planned offer.

The right issue offer of 544.7 million ordinary shares at 55 kobo for each 50 kobo ordinary share, would be made at twenty one shares for every one held by it’s share holders as at august 11, 2006. The rights issue are tradable on the floors of the Nigerian Stock Exchange floors.

The essence of the offer is to enable the company to offset her N300 million Indebtedness to First Capital Trust Limited that provided a swing loan used to cancel her over ten years debts to some other creditors and financial institutions. According to the chairman as soon as this is done the company will regain her leadership position in the industry by refurbishing facilities in her operating mills at Aba, Benin and Ikeja as well as re-open her Kaduna mill that had been out of use for sometime. The company directors have fore-casted a ‘profit after tax’ of N70.6 million, N195.6 million and N317 million for the ending of 2007, 2008 and 2009 financial years.

Meanwhile, the company has registered the shares with the securities and Exchange commission (SEC) and arrangements has been made for the admission of the shares to NSE’s official list for onward trading on the floors.

(No Ratings Yet)

 Loading ...

This entry was posted on Thursday, November 30th, 2006 at 4:04 pm and is filed under Stock Market News. You can follow any responses to this entry through the RSS 2.0 feed. Tags: Livestock Feeds
You can leave a response, or trackback from your own site.