Monday, September 16, 2013

UACN’s Shares Rise on Acquisition by S’African Firm

Shares in UAC of Nigeria (UACN) Plc closed 0.9 per cent higher at N55
per share yesterday as the stock market reacted positively to news
that Famous Brands Limited (FBL), a South African leading quick
service and casual dining restaurant operator, is to acquire 49 per
cent stake in UAC Restaurants Limited (UACR).
UACN is a leading diversified company with operations in foods,
paints, logistics and real estate listed on the Nigerian Stock
Exchange (NSE), while FBL is an investment holding company listed on
the Johannesburg Stock Exchange.
FBL operates popular fast-food chains such as Wimpy, Steers and
Debonairs Pizza and has 172 restaurants across the continent. It
already has Debonairs' Pizza and Steers operating in Nigeria.
Market analysts said the acquisition of 49 per cent stake in UACR,
which will be concluded October 1, 2013, would entrench FBLs
operations in Nigeria and boost UACR's fortunes.
However, speaking on the development, Group Managing Director/Chief
Executive Officer of UACN, Mr. Larry Ettah, said: "We are delighted to
partner FBL in this venture. This is a transformative transaction
which ensures UACR has the necessary strategic partner to unlock the
considerable value potential in the QSR landscape which Mr. Bigg's
defined 25 years ago and in which it still maintains a leadership
position. UACR will be availed of FBL's tested and highly successful
brand stewardship to enhance and reinforce the Mr. Bigg's brand market
power. This deal further reinforces UACN's commitment to ensure we
collaborate and leverage international partnerships to accelerate our
strategic growth and progress."
On his part, Chief Executive of FBL, Mr. Kevin Hedderwick, said "This
joint venture delivers compelling benefits for both parties: UACR will
be vending in a formidable brand (Mr. Bigg's), local expertise as well
as a nationwide distribution network and Lagos-based manufacturing
infrastructure. In exchange, FBL will add value to the business
through our expertise in managing intellectual property, growing
brands and optimising supply chain operations and efficiencies."
He added that one of the key challenges of expanding into the rest of
Africa has been to source suitable local partners, noting that this
acquisition has surmounted that obstacle.

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