Shareholders of RT Briscoe (Nigeria) plc have authorised the board of the company to raise N10bn fresh capital through debt instruments, preference shares, ordinary shares or a combination of these options by way of rights issue, private placement or offer for subscription.
The shareholders endorsed a special resolution proposed by the board to raise the fresh capital at the company’s annual general meeting held on Thursday in Lagos.
In a bid to accommodate the impending fresh capital, the shareholders also increased the authorised share capital of the company N2bn divided into four billion shares of 50 kobo each to N3.250bn divided into six billion, five hundred thousand shares of 50 kobo each.
Clement Olowokande, chairman, RT Briscoe (Nigeria) plc, while addressing the shareholders at the meeting said, “Rather than dwell on the handicaps that the company had to face in the current difficult business environment, your board has been strategising on how to optimise the use of available resources and opportunities for maximum returns.
“In order to raise the much needed capital for business expansion and working capital, your board is exploring the possibilities of recapitalising through debt instruments, additional equity or a combination of both,” adding that the board will on behalf of the share holders, carefully select suitable time and modality for implementing these options.
The chairman also observed that, “the automobile industry in Nigeria, particularly for motor dealers and distributors like us (RT Briscoe), is currently in a development phase that requires significant capital outlay for stock, after sales infrastructure and implementation of development phase for the future.”
Owing to difficult operating environment in 2013, RT Briscoe recorded a group turnover of N21.8bn during its financial year ended December 31, 2013 compared with a turnover of N21.9bn during the corresponding period of 2012.
He said the competition in the market place has become more severe as all major brands in the world are now present in the country.
On the future prospect of the company, the chairman the recent rebasing of Nigeria’s GDP confirmed enormous business opportunities in the country for a company like RT Briscoe.
