The deal has been approved by authorities, Mike Asuquo, a spokesman for Lagos-based UAC, said by telephone today. No one was immediately available to comment at Portland, which is also based in Nigeria’s commercial capital.
“The acquisition provides UAC with the opportunity to diversify its paints revenues by gaining entry into the mid-tier decorative and marine paints market where Portland Paints has a leading position,” Larry Ettah, chief executive officer of UAC, said in an e-mailed statement.
UAC said May 2 that net income for the year through December jumped to 7.1 billion naira ($44.3 million) from 3.9 billion naira a year earlier. Portland’s profit in the first quarter dropped to 20.1 million naira from 75 million naira a year earlier, the company said on May 2.
UAC’s stock fell a second day, dropping 0.2 percent to 54 naira. The shares have gained 54 percent this year. Portland Paints rose a fourth day, advancing 10 percent to 4.95 naira, its highest since June 4.
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