Presco mgt approves fundraising from debt market

By Kayode Tokede

The board and management of Presco Plc has approved the company’s fundraising from debt market.

In a corporate disclosure released by Presco and signed by the Company Secretary, Patrick Uwadia Esq., Presco notified the Nigerian Exchange Limited (NGX) and members of the investing public of the following resolutions passed at the Board meeting held recently.

According to the statement, the Directors of the company have been authorized to raise additional capital by issue of debt instruments including but not limited to commercial papers, bonds, loan stock or redeemable convertible bonds by private placement or otherwise to be determined by the Directors and subject to regulatory approvals.

The disclosure further states, “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.”

The board was further encouraged to appoint professional parties and advisers to see that the objective is reached in effecting the resolutions.

The corporate disclosure is coming after the company made an earlier announcement in a statement on June 15 to hold an emergency meeting for the approval of the Board to acquire the shares of an existing private company.

Presco is one of the largest Oil producing listed companies in Nigeria, with a market capitalization of 74.5 billion naira and a current share price of N74.50.

The agricultural company in April 2021 recorded a massive increase of 113.33% in the PAT (Profit After Tax) and proposed a dividend payment of N2.00 per 50 kobo ordinary share to its shareholders whose names appear in the register of members on the 6th of July, 2021.

The dividend is scheduled to be paid on the 26th of July, 2021.