Mr Nnamdi Okafor, the Managing Director, May & Baker Nigeria Plc, says the just concluded N2.45 billion rights issue will be fully subscribed.

Okafor, who stated this at a news conference on Wednesday in Lagos, assured shareholders of better returns in the years ahead.

He said that the rights issue concluded two weeks ago would be well taken by shareholders.

Okafor said that proceed of the offer would be used for business expansion and unlocking of opportunities inherent in the industry.

He said that the company would divest to other businesses related to healthcare to create enhanced value to its shareholders and stakeholders.

“From 2020, we will begin to do some big investments and will likely raise further equity from then,” Okafor said.

The News Agency of Nigeria (NAN) reports that the company offered rights issue of 980 million new shares of 50k at N2.50 per share on the basis of one new share to one share currently held.

The offer, which opened on Oct. 22 is expected to close on Nov. 28.

He said that over N400 million of the expected N2.45 billion would be used to finance part of its equity in Biovaccines Nigeria Limited, the joint venture company for local vaccine production.

Okafor said that over N500 million would be invested on capacity expansion for one of its cash cow products, Paracetamol, while marketing and branding building would gulp over N500 million.

According to him, about N400 million will be used to offset part of our current loan portfolio of about N950 million, while the remaining will be used to buoy working capital.

“Our new strategic focus since 2017 is to build an international brand within the sub-Sahara Africa market,” he said.

Okafor said that the company’s strategic goal was to become a preferred brand in Nigeria with the clear leadership and to become a regional healthcare powerhouse with strong and wide footprints in the sub-Sahara market.

Commenting on ban of codeine, he pleaded with the Federal Government to review its position on outright ban because it was affecting the industry.

Okafor said that government needed to improve on control manufacturing and distribution of the product instead of outright banning.

He said that the best thing to do was to ensure product usage would only be based on prescription.

“Government should control the usage instead of outright banning,” Okafor said.

He said that healthcare industry was still engaging the government on the matter. (NAN)