The merger deal between Chemical and Allied Products (CAP) Plc and Portland Paints & Products Nigeria Plc remains on track and is expected to be completed by the close of the first quarter (Q1) of this year 2021.
Investigations by Daily Sun reveal that the deal is subject to approvals from shareholders of both companies as well as final regulatory approvals and court sanction.
The amalgamation of the firms, both subsidiaries of UAC of Nigeria Plc, had been in the works for more than one year and the transaction is expected to spin off a bigger entity that will run under the name CAP Plc which is expected to emerge at the end of the consolidation process.
Furthermore, the deal will involve the transfer of all Portland Paints Plc’s assets, liabilities and business undertakings including real property and intellectual property rights to CAP Plc.
In consideration for the transfer, CAP Plc is offering shareholders of Portland Paints a choice to receive N2.90 cash for every Portland Paints share held or one new ordinary share of CAP Plc, credited as fully paid up for every eight Portland Paints shares held.