United Africa Company Nigeria Plc (“UACN Plc”), a diversified conglomerate and one of Nigeria’s oldest companies announced on Thursday that it will wind up the assets of one of its subsidiary businesses, Warm Spring Waters Nigeria Limited, makers of ‘Gossy’ Table Water based in Ikogosi, Ekiti State.
The company cites weak operational performance due to problems associated with the rural location of the plant at the source of the spring water, logistical challenges, 100% reliance on company-generated power and a difficult operating environment as reasons to shut the business.
Warm Springs Waters commenced business in 2002 in Ikogosi, Ekiti State, in partnership with the Ekiti State Government and some private investors to produce premium quality spring water under the ‘Gossy’ brand.
UACN holds 76% shareholding in the joint-venture, with Ekiti State Government and other private investors holding the remaining shares.
The Group (“UACN”) said that shareholders of the company at a meeting on 6th February 2018, resolved to appoint a liquidator to wind up the affairs of Warm Spring Waters and distribute its assets. The Group notes that Warm Spring contributed less than 1% or N369 million and a loss before Tax of N78 million in its nine months results ended 30th September 2017.
UACN is in the middle of a N15bn “Rights Issue” to strengthen its capital position which will enable it to fund its subsidiaries, provide working capital support in a timely manner, and seek other attractive business opportunities.
The Group still operates its ‘SWAN’ Table Water brand under UAC Foods Limited, another of its subsidiaries.