The Board of Directors of Presco Plc (NGX: PRESCO) has resolved to raise additional capital and to acquire the shares of a private company in the same line of business as Presco Plc.
According to the corporate action notification published on the Nigerian Exchange on Monday, these resolutions were passed at the Board Meeting held on Friday 25 June, 2021.
The document signed by Patrick Uwadia, Esq. Company Secretary read: “This is to notify the shareholders of Presco Plc, the NGX Regulation Limited and the investing public that the Board meeting of Presco Plc was held on Friday 25 June, 2021 and the under listed resolutions were passed:
“That pursuant to the Memorandum and Articles of the Presco Plc, the Directors are hereby authorized to raise additional capital by the issue of debt instruments including but not limited to commercial papers, bonds, loan stock, redeemable convertible bonds whether by way of private placement or otherwise upon such terms and conditions to be determined at the discretion of the Director and subject to any requisite regulatory approvals.
“That in accordance with the provisions of the Companies and Allied Matters Act 2020 and the Company’s Memorandum and Articles of Association the Directors and Management of Presco Plc are duly authorized to invest in and acquire the shares of a private company limited by shares in the same line of business as Presco Plc subject to regulatory approvals.”
On June 16, Presco Plc had announced that its Board of Directors will hold an emergency meeting on Thursday 24th June, 2021 to consider a possible expansion of the business.
At the time Presco said the Board is expected to recommend that Shareholders consider and if thought fit pass a resolution at the next General Meeting of the Company authorizing Presco Plc to acquire all the shares of an existing private company limited by shares and in the same line of business with the company.
The identity of the private business is still unknown at the time of this report.
The equity price of Presco Plc fell by 1.84% on Monday to close at N74.50 per share. YTD the share price is up by 5.00%. The 52-week high and low prices are N79.75 and N45.25 per share respectively.
About the Company
Presco Plc was incorporated in Nigeria on 24th September, 1991 as Presco Industries Limited, a private limited liability Company, and became a public limited liability Company in February 2002.
Presco’s initial public offer was successfully completed, and since 9th October 2002 Presco Plc has been listed on the Nigerian Stock Exchange. The public offering of Presco consisted of the sale of approximately 160 million shares at NGN 5 each.
Presco Plc specializes in the cultivation of oil palms and in the extraction, refining and fractioning of crude palm oil into vegetable oil and palm stearin.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.