NSE delists Vono Products following Vitafoam acquisition

The Nigerian Stock Exchange (NSE), on Tuesday delisted Vono Products Plc from its daily official listing following the complete acquisition of Vono Products entire shares by VitafoamPlc.

A report from the NSE confirmed this stating “The entire 563,651,183 ordinary shares of Vono Products Plc have been delisted from trading on the NSE as a result of the merger between Vitafoam Nigeria Plc and Vono Products Plc.

Consequently, a total of 59,570,053 ordinary shares of 50 kobo each arising from merger between Vitafoam Nigeria Plc and Vono Products Plc at N7.00 per share were added to the outstanding shares of Vitafoam Nigeria Plc on 23rd May, 2016, pooling the total outstanding shares of the company to N1.04 bIllion.

Earlier, the two companies have obtained the statutory court order sanctioning their business combination, and secured approvals of their shareholders, Securities and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE) for this transaction.

Stakeholders of Vitafoam Nigeria and Vono Products also rooted for the business combination, arguing that it would create better values for shareholders of the two companies and enhance the long-term competitiveness of the larger company.

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. he also added that 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.

He said the national spread of the group and its international operations have positioned it to weather tough operating environment and continue to deliver better values for shareholders.

Shares of the consumer goods production company with factories in factory in Ikeja, Kano, Aba and Jos last traded at N4.66 per share.