Shareholders of Vitafoam Nigeria Plc on Wednesday at the company’s Extra Ordinary General Meeting, EGM, unanimously gave approval to the Board of Directors of the company to raise additional N4 billion capitals to enhance its operations.
The shareholders agreed that the money can be raise by issuing securities such as equities, rights issue, debenture, special placing and other options or combination of any of these methods and conditions as the directors may desire.
The Managing Director, Vitafoam, Mr. Joel Ajiga, who spoke to newsmen after the meeting, said “I am delighted that the shareholders gave their approval for the company to raise additional fund. They understand the potentials inherent in the company and ripple effect it will have on the stakeholders. On the method of raising the fund, we are planning a right issue in the first instance, which will be one for one ordinary shares. We hope the existing shareholders will pick their rights because they are supporting the offering.’
He also explained the bonus and dividend being demanded by shareholders, saying: ” We will give bonus based on performance. This is the essence why we want to raise the capital to improve productivity and in turn improve the bottom line that will make the company declare higher dividend in the future.
In his own remarks, the Chairman of Vitafoam, Dr. Bamidele Makanjuola, said: “Most of the money the company earns go to the banks in form of higher interest expenses. So, that is why the company had decided to put a stop on banks’ borrowing and go into long term borrowing from the capital market. We will revisit the bonus issue based on performance.”