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By NBF News
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Written by Kayode Ekundayo, Lagos  Monday, 28 May 2012

Chairman of May & Baker Nigeria Plc, retired General Theophilus Y. Danjuma has agreed to personally pay the N1.3 billion bank loans owed by the company.

Shareholders of May & Baker Nigeria Plc last Thursday pleaded with him to bail out the pharmaceutical company from its bank debts.

Moving a motion urging Danjuma to intervene by personally repaying the loan at the company's 61st annual general meeting in Lagos, the president of the Shareholders Solidarity, Sonny Nwosu, pleaded with General Danjuma to bail the company out as failure to do so would amount to the company using the rest of its life repaying interest on the loans.

The company chairman who was not indisposed to the plea, asked the shareholders present to put it as a motion. Nwosu moved the motion, saying, 'I move a motion authorizing the board and management to seek financial assistance or loan from the chairman, General Theophilus Danjuma retired.'

The motion was unanimously carried and endorsed by all the shareholders present.

Gen. Danjuma also agreed to help the company to clear the loans.

With the highest shareholding of 238.928 million shares, about 24.38 per cent of the total interest through T.Y Holding Limited, General Danjuma  become the largest financier of May & Baker.

The company had last year completed and commissioned a new pharmaceutical manufacturing company, known as PharmaCentre. The company had also in 2010 secured N920 million from the Central Bank of Nigeria (CBN) under its intervention fund to manufacturers at 7 per cent interest per annum.

Speaking on the performance of the company, General Danjuma said it's turnover grew by 4.3 per cent, from N4.6 billion in 2010 to N4.8 billion in 2011 while its profit after tax rose to N255.6 million against N192.9 million recorded the previous year.

General Danjuma, however, pleaded with the Federal Government to increase its patronage, improve on the current poor infrastructure and address the security challenge in the country.