DN Meyer moves to recapitalise, rebrand. (6th July, 2016)
The board of DN Meyer PLC is set to change its name to Meyer PLC in a bid to reposition the company and properly reflect the core ownership of the company. The company is also planning to raise about 220 Million Naira by way of rights offering at 75 kobo per share. The proceeds of the issuance, according to the company, will be used to upgrade its facility, develop in-factory tinting centre, while enhancing the brand, its market presence and working capital. The chairman of the company Mr. Kayode Falowo said this at the firm’s 44th Annual General Meeting held in Lagos. Falowo said, “As part of or effort to reposition the company and the need to properly reflect the core ownership of the company, the board has proposed a change of name. We believe that the name changed from DN Meyer PLC to Meyer to Meyer PLC will have a positive impact on our medium to long term strategy.
“In view, of our opportunities we see in our business and in order to enhance our capacity to compete for market share, we are in the process of raising fresh equity capital by way of a right issue. This approach is preferred as it enables existing shareholders to participate in the exercise to retain their shareholding in the company and benefit from its future growth and profitability. The company’s shareholders at the AGM approved the plan to raise additional capital of 220 million Naira by way of rights issue, and also endorsed the forms’ arrangement to change its name to Meyer PLC. Giving the approvals during the meeting, the stakeholders urged the management to ensure prudent use of the funds in order to boost its bottom line and increase profitability.
Falowo explained that the fund would be used to finance the upgrade of the company’s factory, develop the in-factory tinting centre, and enhance its brand and marketing presence as well as boosting the firm’s working capital. According to him, its profitability received a boost during the year under review with the engagement of the Asset Management Corporation of Nigeria to restructure the company’s existing loan with the corporation. Following the engagement, the chairman explained that the company obtained interest waivers on the loan which accounted for a reduction in the net finance cost from 121.5 million Naira in 2014 to 92.9 million Naira in 2015.
He pointed out that the company did not incur fresh debt during the year under review, adding that all the company’s operating activities were financed with internally-generated funds. Falowo added that the company recorded a turnover of 1.19 billion Naira, against 1.34 billion Naira achieved during the corresponding period in 2014 while profit before interest and tax stood at 151.01 million Naira compared to 72 million Naira posted in 2014. The president, Nigerian Shareholders Solidarity Association, Timothy Adesiyan, commended the company on its ongoing restructuring exercise. He also applauded the management for reducing the firm’s loan profile, which had impacted on its financial charges. Adesiyan urged shareholders to leverage the company’s rights issue and increase their holdings in the company’s right issue and increase their holdings in the company.
The President, Greenwich shareholders Association, Adebayo Williams, urged the management to deploy the fund to areas of business where they are currently making profits. He also advised them to create a team that would carry out the evaluation on the expenses the company would incur during the exercise.