Leadership (Abuja)
Nkiruka Anene
8 January 2008
Lagos — Shoreline Energy International, a leading infrastructure and energy group focused on sub-Saharan Africa has announced the acquisition of a strategic 40 per cent stake in Premier Paints Plc, a company listed on the Nigerian Stock Exchange.
The acquisition will deliver considerable top line synergies for Shoreline Energy International's portfolio companies in the construction sector in the short term while medium term synergies will be delivered through investment in capability to service Shoreline Energy International's portfolio companies in various infrastructure sub-sectors.
The acquisition is expected to be completed by the end of the first year of ownership.
"The Premier Paint's transaction marks another important milestone in our group's drive to expand and enhance our strategy of leadership in infrastructure and energy in sub-Saharan Africa. Premier Paints brings immediate benefit to our portfolio companies such as Costain West Africa and our growing furniture and joinery businesses. It also positions us well as we expand our capability in servicing key infrastructure sub-sectors, it's a fantastic addition to our portfolio," said Kola Karim, chairman/CEO, Shoreline Energy International.
"The acquisition of a strategic stake in Premier Paints is our latest example of how Shoreline Energy International is delivering on a transformational growth strategy. Premier Paints is a strategically aligned acquisition that brings new expertise, exciting growth opportunities and accelerates growth in key portfolio companies," he continued.
Speaking recently with journalists at the end of the company's Annual General Meeting (AGM), chairman of Premier Paints, Chief Ogooluwa, Bankole, expressed delight that Premier Paints "would now have access to the finance, international management know how and investment it needs to grow"
For Premier Paints, the transaction fits with its objectives of securing an investor with a strong balance sheet and capable world - class management committed to further develop the paints business in sub- Saharan Africa.
Although, Premier Paints has been successful in growing its business, to achieve the next stage of its development, its board believes that it would be necessary to increase the geographical scale of its operations and to invest in capability to service emerging growth markets across sub-Saharan Africa.
Partnership with Shoreline Energy International will immediately achieve these strategic objectives for Premier Paints.
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