Shareholders of Chemical and Allied Products (CAP) Plc and Portland Paints and Products Nigeria (PPPN) Plc have approved the merger of the two paints company, a development that will significantly alter the competition in the paints industry.

At the court-ordered meeting (COM) in Lagos, which was also hosted virtually online, shareholders of the two paints companies approved the scheme of merger for the business combination, setting the final phase of the merger on its concluding processes.

According to the scheme of merger approved by the shareholders, shareholders of PPPN will receive one CAP share for every eight ordinary shares of PPPN or a cash consideration of N2.90 for every PPPN share.

The cash consideration represents 41 per cent premium on the last trading price of PPNN on October 23, 2020, being the last trading day before the announcement of the merger.

Subsequently, PPPN will be dissolved without being wound up, delisted from the NSE and its shares registration at Securities and Exchange Commission (SEC) withdrawn.