The Nation Newspaper

Tag: Vono

  • Vitafoam Nigeria, Vono Products finalise merger

    •NSE to delist Vono Products  

    Vitafoam Nigeria and Vono Products are set to finalise their merger.

    The two companies have obtained the statutory court order sanctioning their business combination. With the order of the Federal High Court, both companies have entered the concluding phase of the business combination.

    Vitafoam Nigeria and Vono Products had earlier secured approvals of their shareholders, Securities and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE) for this transaction.

    At the conclusion of the merger process, Vono Products Plc will be dissolved and delisted from the NSE

    The NSE at the weekend indicated that it would suspend trading in the shares of Vono Products Plc as from today. However, transactions will continue on Vitafoam Nigeria as it will become the surviving entity from the merger of the two companies.

    Stakeholders of Vitafoam Nigeria and Vono Products have 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.

    Adeniyi said 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.

    “We are truly a national company. We have a full fledged factory in Ikeja, Kano, Aba and Jos. We also have factories offshore,’’ Adeniyi said.

     

  • ‘Vitafoam Nigeria, Vono Products merger ‘ll benefit shareholders’

    The merger of Vitafoam Nigeria Plc and Vono Products Plc would create better values for shareholders of the two companies and enhance the long-term competitiveness of the larger company.

    Shareholders of both Vitafoam Nigeria and Vono Products earlier this month voted in favour of a scheme of merger, which will see Vitafoam Nigeria absorbing Vono Products.

    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.

    Addressing journalists in Lagos, Adeniyi said 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.

    “We are truly a national company. We have a full fledged factory in Ikeja, Kano, Aba and Jos. We also have factories offshore. We operate in Sierra Leone and Ghana and these are strategic centres aimed at positioning us for inflow of forex in the long term. They may not be generating expected profit for now but they have high prospect. The key issue is that Vitafoam as a group has a very bright future and the shareholder value would be greatly enhanced,” Adeniyi said.

    Corroborating him, Group Executive Director, Corporate Services, Vitafoam Nigeria, Mr Olatunji Anjorin described the merger as a vertical one as the furniture produced by Vono Products would complement Vitafoam’s foams.

    Anjorin explained that the consummated merger would put an end to past encumbrances militating against Vono’s growth, bringing about more efficient expertise, shared value and improved technology.

    Commenting on the operating environment , Adeniyi lamented the plight of manufacturers and pleaded that the Federal Government should address the chronic shortage of dollar and also revive Eleme Petrochemical Industry to live up to its strategic objective of serving as a hub for providing raw materials.

  • ‘Vitafoam Nigeria, Vono Products merger will benefit shareholders’

    ‘Vitafoam Nigeria, Vono Products merger will benefit shareholders’

    The merger of Vitafoam Nigeria Plc and Vono Products Plc would create better values for shareholders of the two companies and enhance the long-term competitiveness of the larger company.

    Shareholders of both Vitafoam Nigeria and Vono Products last week voted in favour of a scheme of merger, which will see Vitafoam Nigeria absorbing Vono Products.

    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.

    Addressing journalists in Lagos, Adeniyi said 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.

    “We are truly a national company. We have a full fledged factory in Ikeja, Kano, Aba and Jos. We also have factories offshore. We operate in Sierra Leone and Ghana and these are strategic centres aimed at positioning us for inflow of forex in the long term. They may not be generating expected profit for now but they have high prospect .The key issue is that Vitafoam as a group has a very bright future and the shareholder value would be greatly enhanced,” Adeniyi said.

    Corroborating him, Group Executive Director, Corporate Services, Vitafoam Nigeria, Mr Olatunji Anjorin described the merger as a vertical one as the furniture produced by Vono Products would complement Vitafoam’s foams.

    Anjorin explained that the consummated merger would put an end to past encumbrances militating against Vono’s growth, bringing about more efficient expertise, shared value and improved technology.

    Commenting on the operating environment , Adeniyi lamented the plight of manufacturers and pleaded that the federal government should address the chronic shortage of dollar and also revive Eleme Petrochemical Industry to live up to its strategic objective of serving as a hub for providing raw materials.

  • Vono grows turnover by N316m

    Vono Products PLC has grown its turnover by N316million. While in 2012, turnover was N525.8million, last year, it was N841.4million.

    Its Chairman, Dr Mohammed Yinusa, announced this at its Annual General Meeting (AGM) in Lagos. He said its gross profit rose from N121.3million in 2012 to N230million last year. However, the fortunes of the firm improved in the year under review as profit after tax went up to N1.5million compared to a loss of N86.8million it posted in 2012.

    Dr Yinusa lamented that the fortunes of the firm were affected by the insurgency in the North.

    He said: “It is disheartening to note that a great number of manufacturing companies and business concerns, including our company are already counting their losses from this deeply hurtful and disconcerting situation. It is hoped that the government will find a lasting solution to the problem before it takes its toll on the economy.”

    Besides insecurity, he said the industry also suffered from dearth of infrastructure and dumping of cheap and substandard furniture. He said: “While importation of wood  work is classified as contraband, most of our prominent stores are adorned with such items of furniture.

    “The problem was exacerbated by low entry barrier in the furniture industry resulting in the prevalence of several small players with no formal structures. This posed a significant threat as our furniture products, particularly beddings could not compete in terms of pricing. Compromising quality was not an option in the circumstance so as not jeopardise the brand image.

    “It is gratifying to mention that Vono brand still commands tremendous goodwill among several private and public institutions and individuals with craving for quality and durability. He said efforts would be geared towards expanding their share of the market via efficient procurement and production processes.”

    One of such ways, he said, was to exploit opportunities that might arise from the housing sector, which, he noted, has a deficit of 15 million units. Also, he hoped that the government would boost the education sector as it would have spiral effects on the furniture subsector, adding that the firm will take advantage of its large distribution network to bring its products to the consumers.

    Dr Yinusa also said the firm would enter into joint ventures with some foreign partners to boost its finance base.