Vitamalt Nigeria Plc

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Vitamalt plans N1.7 billion fund injection
By Adeyinka Adedipe

IN its resolve to reposition its brand, Vitamalt Nigeria Plc, makers of Vitamalt, has concluded plans to raise funds through right issues and private placement planned for next year.

Executive Vice Chairman of the outfit, Kolapo Lawson, said that the current shareholders were fully committed to the plan to increase production by raising funds and ensuring that investors share in the growth of Vitamalt. He revealed that the company would raise its authorised share capital from N800 million to N2.5 billion.

According to Lawson, a new management team headed by Suneel Vasudevan would spearhead the company's drive to once again become a major player in the malt drink industry.

He noted that the downturn in the economy affected the company drastically, but assured that the company is now ready to take advantage of the improvement he said the economy has witnessed in recent times.

" It is with this in mind that we have stated our plan for the future by raising funds from right issues and private placement. The funds will then be used to upgrade the plant, re-invigorate the brand and introduce new product into the market," he added.

Speaking in the same vein, the company's chairman, Bamwo Smith, said that the new management team is expected to usher in a new beginning for the company with a view of reclaiming its place in the malt drink brand.

He noted that the company, which came into existence in 1978, has gotten approval from shareholders to take necessary step in enlisting the company on the Nigerian Stock Exchange. He said he was happy to see Vitamalt making further steps to put itself back among the leading malt producers in the country.

Vasudevan, who was delighted to accept his appointment, said that the consumers know the health benefits of the drink and efforts should be done to expand production facilities to meet consumers' demand.

While promising customers what he referred to as a few surprises in the coming month, the chairman said that the outfit is going through a paradigm shift, where the seemingly tired outfit would be brought back to life with good management and marketing strategies.

" I think we have missed opportunities in the past and right now we are ready to cash in on the vibrancy the economy is witnessing at the moment through the middle class, which is coming back," he stated.