UAC of Nigeria Plc will in the next three years concentrate on building its Holding Company structure through strategic acquisition of companies in key sectors of the economy, said the chairman, Senator Udoma Udo Udoma.
Speaking in a forum in Lagos, Udoma said the consolidation will empower UACN to deliver more formidable subsidiaries that will enhance shareholders’ value, as well as achieve its vision of outstripping Nigeria’s annual GDP growth rate in terms of revenue performance.
He said, “Our company will continue to sustain growth in all our existing and acquired businesses despite the constraints and in line with our mission to grow our top-line significantly above Nigeria’s annual GDP growth rate.”
According to him, the company would seek to increase the capacity in two of its subsidiaries – UAC Foods Limited and Grand Cereals Limited – to meet increasing demand, adding that it would conclude other strategic partnerships in the course of the year.
He added, “We have made significant progress in our growth drive into adjacent categories with the conclusion of our acquisition of Livestock Feeds and Portland Paints and Products Plc. These acquisitions are in line with our strategy of building a portfolio of brands and businesses with strong growth potentials in the Nigerian economy.”
Udoma further stated that it has completed restructuring of two of its divisions – MDS Logistics and UAC Restaurants – into limited liability companies, adding that the company recently entered into another partnership with Imperial Mobility BV under which it bought 49 percent of UAC’s 100 percent equity in MDS Logistics.
Investors at the meeting commended the board and management over the acquisitions, saying that there is an array of hope for the shareholders.
“There is something that shows that there is array of hope for UACN. The rate of growth in the business shows that it is in good hands. The management has structurally done so many things to position UAC where it is today,” said Mr. Adebayo Adeleke of Independent Shareholders Association of Nigeria.
