Austin Laz seeks new investors in N2.1bn capital raise, merger push

Austin Laz & Company Plc has received shareholders’ approval to raise N2.1 billion through a private placement, merger, business combination, or hybrid transaction, giving the board broad powers to bring in new investors and pursue strategic deals aimed at strengthening the company’s capital base.

The approval disclosed on the Nigerian Exchange Group was granted at an extraordinary general meeting (EGM) held virtually on June 18.

The company said the capital raise could exceed N2.1 billion if the board deems it necessary, with directors authorised to determine the most suitable structure, whether through a private placement, merger, business combination, or a hybrid arrangement.

“As part of the resolutions, shareholders approved the use of the company’s unissued shares to facilitate the transaction, with any newly issued shares ranking equally with existing ordinary shares,” the company disclosed in a statement.

The board was also empowered to issue the new shares at N5 per share or at another price it may determine, depending on market conditions and negotiations with investors. The shares may be allotted to one or more investors in tranches and on terms considered appropriate by the directors.

The resolutions grant the board wide-ranging authority to negotiate and finalise the transaction structure, including determining the timeline and approving the list of potential investors.

Directors were further authorised to appoint financial advisers and other professional parties and execute all agreements, deeds, and documents required to complete the transaction.

The move signals a strategic shift by the refrigeration, thermoplastics, and aluminum products manufacturer, opening the door to not only fresh equity injection but also possible mergers or business combinations that could alter the company’s ownership structure and growth trajectory.

Austin Laz’s board was also empowered to obtain all required approvals from regulatory agencies, including the Securities and Exchange Commission (SEC) and the NGX, and to comply with any directives issued by the regulators.

In addition, the company secretary was mandated to effect changes to the company’s share capital structure at the Corporate Affairs Commission (CAC), including amendments to the Memorandum and Articles of Association to reflect the increase in authorised share capital.