NGC GETS SHAREHOLDERS' APPROVAL TO RAISE N4BN
The shareholders of Nigerian-German Chemical (NGC) Plc, have approved proposal by the board of to raise N4 billion fresh capitals.
The Chairman of the company, Mr. Babatunde Savage, who disclosed this during the company's yearly general meeting in Lagos, said NGC has also secured additional funds from Afrexim Bank to complete the establishment of its Intravenous Fluid manufacturing facilities.
'However, the company continues to labour under very high debts relative to its business turnover, a significant portion of these debts being tied to investment on the IVF project.
'Management is focused on a set business de-risking tactics, while remaining true to its business transformation. These entail a combination of restructuring of debts into long maturities. Management has also retained the services of the financial advisers, who have worked with access long term options currently available including pre-available including preferred equity options,' Savage said.
He said once the expansion is complete and patient capital is accessed, the company will be 'poised to unlock its potential and reward shareholders robustly for their patience and support during these recent challenges. The company is blessed with a wide number of brands, which command strong market position.'
Speaking, the National Coordinator, Independent Shareholders Association of Nigeria, Sir Sunny Nwosu, used the opportunity to advice the board and management of the company to pay strict attention to its Intravenous Fluid (IVF) manufacturing.
'IVF is an important turning point for the company. During construction, the environment should conform to World Health Organisation (WHO) requirement,' adding that the project is very sensitive and important.