Cutix Plc has announced plan to acquire Adswitch Plc, a related electrical switchgears company that was delisted on the Nigerian Stock Exchange (NSE) in 2016. Adswitch, a Nigerian company, was incorporated in 1982 and it has a close relationship with Cutix Plc.
The board of Cutix stated that it the acquisition is intended to enhance business expansion and boost the profitability of the company. The board has put a special resolution on the acquisition as one of the items for approval of shareholders at the forthcoming annual general meeting on October 25, 2019.
The directors of Cutix, a wire and cable company, are seeking the mandate of shareholders to enable them enter into any agreements and execute any other documents necessary for and incidental to affecting the resolution on acquisition of Adswitch. Cutix is an indigenous company wholly owned by Nigerians.
Incorporated in 1982, the company gradually transformed from a private limited liability company formed and owned by friends and family members to become a publicly quoted company. Cutix recently invested about N300 million on a new extension of its factory as part of efforts to increase the installed production capacity of the cables-manufacturing company.
The new factory extension was expected to impact positively on the production capacity and efficiency of the company and to enable it to further improve its performance notwithstanding the increasing competition in the cables industry.