The merger of Vitafoam Nigeria Plc and Vono Products Plc would create better values for shareholders of the two companies and enhance the long-term competitiveness of the larger company.
Shareholders of both Vitafoam Nigeria and Vono Products last week voted in favour of a scheme of merger, which will see Vitafoam Nigeria absorbing Vono Products.
Group Managing Director, Vitafoam Nigeria Plc, Mr Taiwo Adeniyi said the merger of the two leading foam and bedding companies would lead to higher earnings and enhanced shareholder value.
Addressing journalists in Lagos, Adeniyi said the shareholders of the two companies voted in favour of the merger because of potential benefits such as economies of scale, cost savings and improved operational and administrative efficiencies among others.
According to him, the enlarged company would have enhanced growth in size and profitability. “If we produce foam and Vono produces furniture, they are complementary. It is a strategic decision for Vitafoam to have Vono as a subsidiary. As you are aware, we have other subsidiaries such as Vitabloom, Vitagreen and Vitapur. Each of them produces distinct products. But they have something in common and this defines the unity of purpose,” Adeniyi said.