The management of Dalphon Holdings Limited has acquired 69% stake in AG Leventis Plc.
The acquisition was made known in the 2018 financial year results released by AG Leventis Plc over the weekend.
The discussions between the two firms began on the 21st of May, 2018 and were concluded on the 19th of December, 2018.
Prior to the sale of the 69% of its shares to Dalphon Holdings, AG Leventis Plc had incurred a loss in 2017, but getting towards the end of 2018, the conglomerate surprisingly returned to profitability as its revenue increased by 7% from N11.4 billion in 2017 to N12.2 billion the following year. The firm recorded a N720 million profit before tax in 2018, as against a N3.8 billion loss recorded in 2017.
READ ALSO: Nigeria’s Capital Importation Hits $8.4 Billion In Q1’19 – NBS
Profit after tax stood at N876 million, as against a N3.4 billion loss recorded in 2017. Retained losses of N2.6 billion, however prevented the group from paying a dividend.
Leventis Foods Limited, which was founded in 1999, has one of the largest bakeries in Nigeria. Among its products are Valu Bread and Meaty sausage rolls.
According to reports, in the breakdown of the deal, Dalphon acquire the 69% of Leventis shares for N581 million.
Prior to this, AG Leventis Plc had owned 99.9% of Leventis Food. As Dalphon Holdings comes in, receivables of N1.03 billion owed AG Leventis were converted into equity. With the new development, AG Leventis now owns 30% of Leventis foods while Dalphon owns 69%. In the whole deal, a gain on disposal of N1.4 billion was recorded.
Samson Oyedeyi
