Greif sells assets in Nigeria, says no plan to revive operations
Greif Nigeria Plc has announced the sale of its property, plant and equipment, saying it does not have any immediate plan to resuscitate manufacturing in the country.
The company, which is a subsidiary of Greif International Holding B.V., suspended its manufacturing operations in Apapa, Lagos in January 2019, after shutting down its facilities in Delta and Kaduna states as a result of “poor business environment”.
The steel drum manufacturer said it achieved zero revenue last year, a decrease of 100 percent over the N90.52 million reported in 2019.
It said total comprehensive income in 2020 stood at N350.49 million as against a comprehensive loss of N312.23 million in the prior year.
“The profit achieved during the year was brought about by the disposal of the company’s property, plant and equipment with a net book value of N29.250 million for N480.138 million and the sales of scrapped assets and inventories for N20.6 million,” the company said in its financial statements on Thursday.
Its Chairman, Adedayo Olowoniyi, said coupled with the stoppage of all business operations for two consequent years, the company’s next step “is to make an offer to purchase minority share in order to complete the delisting process”.
According to the financial statements, the directors do not have any immediate plan to resuscitate manufacturing in the context of the external business environment in Nigeria, and the company can no longer be considered as a going concern.
The company’s shares are owned by Greif International Holding B.V. The Netherlands (51 percent), the Van Leer Nigerian Education Trust (23 percent) and Nigerian citizens and associations (26 percent).
