Omatek Industries is seeking local and foreign investors to raise capital for a new factory and software development hub as the computer manufacturer moves to rebuild its operations after seven and a half years in receivership.

The company’s Group Managing Director, Yemi Ogundipe, disclosed this at Omatek’s 17th Annual General Meeting (AGM) in Lagos, saying the company was looking for patient capital rather than short-term loans to finance its expansion.

Ogundipe said the proposed Omatek hub would house engineers responsible for developing the company’s software solutions, while the new factory would restore its manufacturing capacity.

“We are trying to set up our own Omatek hub. That hub will house all our own engineers that will develop our own software. To be able to do this, we need money, which is why we are scouting for investors,” he said.

According to him, the company already has land in the Mowe axis of Ogun State for the proposed factory but requires funding to develop a modern facility and provide working capital for a full return to operations.

He said the company’s strategy reflected changes in the technology market, where hardware businesses were increasingly integrating software development into their operations.

“You can see what some IT companies are doing. Those are all software development, so we also want to set up our own Omatek hub to develop our own software solution within our factory premises,” he said.

Ogundipe said the company was specifically seeking patient capital that would give investors sufficient time to realise returns, rather than conventional short-term financing.

“That is why we are appealing to the stakeholders to be patient, to allow us to get new investors that can bring the needed funds. But the funding we are looking for is a patient capital type of fund,” he said.

He added: “We don’t want a loan that somebody will say within 30 days you should pay.”

Ogundipe said Omatek’s immediate priority was to rebuild the business after emerging from seven and a half years of receivership and legal disputes with its lenders.

He said the company had remained resilient despite the prolonged period, but acknowledged that the operating environment had changed significantly.

According to him, competition in Nigeria’s computer market has intensified, with new technology solutions entering the market regularly and increased competition from Chinese manufacturers.

He said Omatek therefore needed significant investment to develop its new factory, provide working capital and regain its position in the market.

Ogundipe said the company had been searching for a suitable investor for about one and a half years but had yet to secure an agreement that management considered favourable to shareholders.

“We need to get a deal that is good for the shareholders in all entirety. Either the majority shareholders or the minority shareholders, I represent both of them, so I have to ensure that I get a good deal,” he said.

He said the company would convene an extraordinary general meeting to finalise an investment agreement once a suitable investor was secured.

Ogundipe also disclosed that Omatek’s factory in Ghana remained operational but had been affected by the difficulties confronting the Nigerian business.

He explained that the Lagos operation had previously supported the Ghana business, making it difficult to sustain the same level of support after the loss of the Lagos factory.

“We also need to restart operations in Ghana as soon as we are able to resolve the issue with the Nigerian situation,” he said.

He said the company continued to receive enquiries from customers who bought its computers many years ago and were still seeking replacement parts and servicing support.

According to him, the continued demand for components from some long-standing customers demonstrates the durability of Omatek’s products.

The company’s proposed investment programme, he said, is therefore intended not only to restore its manufacturing capacity but also to position the business for growth in software and other technology solutions.