Xenergi Plc has initiated a Mandatory Tender Offer (MTO) to purchase 2 million ordinary shares of Premier Paints Plc at N38 per share, amounting to N76 million. The acquisition represents a 1.63 percent equity stake in Premier Paints not currently held by Xenergi. This move follows Xenergi's purchase on June 8 of 61,003,350 shares in Premier Paints, equivalent to a 49.60 percent ownership stake. The transaction was formalised under a Share Sale and Purchase Agreement between Xenergi Plc and Premier Paints Plc, after securing regulatory approvals from the FCCPC, SEC, and NGX.

The MTO was approved by Xenergi's board on December 5, 2025, and is being conducted in compliance with Section 142(4) of the ISA Act 2025, which mandates a tender offer when a party acquires control of a listed company. The offer period runs from June 22 to July 17, during which qualifying shareholders can tender their shares. Shareholders may withdraw their tendered shares at any time before July 3, which marks the end of the 10-day withdrawal window. Emeka Ene, managing director of Xenergi Plc, stated that shareholders who tender their shares will not be entitled to dividends declared for the financial year ending December 31, 2025.

Settlement for accepted offers will be processed through CardinalStone Registrars. Xenergi will transfer the consideration by July 30, with payments to qualifying shareholders expected by July 27 via direct electronic bank transfers. In cases of oversubscription, the SEC may require scaling back of acceptances, which could lead to adjustments in the settlement timeline.

💡 NaijaBuzz Take

Xenergi moves to buy a sliver of Premier Paints it doesn't already control, even as shareholders giving up shares lose dividend rights for 2025. The company's own managing director confirmed they won't receive dividends on tendered shares. Shareholders face a tight window to act, with withdrawal possible only until July 3. The timeline and payout depend on regulator decisions if demand exceeds supply.

Editorial note: AI-assisted opinion, not established fact. Full disclaimer →