• Thursday, June 13, 2024
businessday logo


Kwararafa targets 60% equity stake in Notore

Kwararafa targets 60% equity stake in Notore

Kwararafa Africa Limited is to acquire 60 percent equity stake in Notore Chemical Industries Plc.

This is in respect of proposed private placement in Notore Chemical Industries Plc. The company disclosed this at the Federal Competition and Consumer Protection Commission (the Commission).

Notore is a vertically integrated agro-allied, chemicals, power and infrastructure company situated in Onne (near Port Harcourt), Rivers State, Nigeria. Its shares are quoted on the Main Board of the Nigeria Exchange.

Kwararafa’s principal business activity is investing in the manufacturing, storing or trading in fertilizers and other agricultural inputs.

The proposed transaction involves the Nigerian fertilizer industry, in which the target primarily operates.

It is expected that the proposed transaction will have a positive impact on the industry as it will provide much needed capital to the target to facilitate the overhaul and repair of its machinery as well expand its operations, ultimately benefitting the fertilizer industry and returning profits to the shareholders of the Company.

The year 2023 proved to be a challenging period for Notore, characterised by the devaluation of the naira, significant forex volatility, and the rising cost of funds driven by changes in the Monetary Policy Committee (MPC) rates,” Notore said in a recent statement on its results.

Notore Chemical Industries plc, has recorded group loss after tax (LAT) of N114.2billion for the year ended December 31, 2023, a remarkable increase from loss of N7.1billion in year 2022.

This is even as the company’s revenue decreased to N21.55 billion from N32.3 billion in 2022 financial year.

Notore Chemical also reported basic Loss Per Share (LPS) (Naira) of 70.87 from a low of 4.4 in 2022, according to the results at the Nigerian Exchange Limited (NGX).

Amid negatives in 2023, Notore Chemical Industries plc announced significant progress in its equity raise transaction following approvals from the board of directors and shareholders.

The subscription offer is expected to result in a substantial capital injection of over N105 billion into the company.

During a recently concluded extraordinary general meeting, shareholders provided necessary approvals for the company’s financial prosperity.

These approvals pave the way for a substantial financial boost for various needs, the company said, noting that upon completion of the transaction, the injection of over N105 billion into Notore will bolster operational capabilities

According to Ohis Ohiwerei, group managing director of the company, “We are focused on navigating economic conditions and optimistic about the future. We will leverage our strengths to drive sustainable growth and value creation for stakeholders.”