By Peter Egwuatu

SHAREHOLDERS of May & Baker Nigeria Plc have cautioned its Board of Directors over its planned Rights Issue in order to prevent under-subscription of the offer.

The shareholders who spoke at the 67th annual general meeting, AGM, in Lagos, stated that they will support the company by subscribing to the offer but cautioned that the units of offer for subscription should not be much in order not to record under subscription.

Sir Sunny Nwosu, National Coordinator, (Emeritus) Independent Shareholders Association of Nigeria; Mr. Boniface Okezie, Chairman, Progressive Shareholders Association of Nigeria and Chief Timothy Adesinya, who spoke the minds of their groups said: “We all know how difficult the economy is now, but since this is the right time to float this offer, it will be better if we look at the pricing and number of units to be offered; it will be better if we record over-subscription and then absorb it, rather than record under subscription. We also support the divestment of our non core business as well as the proposed 20kobo dividend per share.”

Responding, the Managing Director of May & Baker Nigeria Plc, Mr. Nnamdi Okafor, commended the shareholders for their support and constructive criticisms that have made the company to improve in the financial year ended December 31, 2017.

He stated: “We appreciate your support, loyalty and contribution towards moving the company forward. We have concluded the process for the sale of our office in Lagos, amounting to N775 million since we have moved to our new factory in Ota, Ogun State. We would use the proceeds to develop our land in Abuja and our administrative office in Ota .”