Foreign investors stake interest in May & Baker

• We will consider technical competence, capital, says MD 

SOME foreign investors and venture capitalist have staked interests in May & Baker Nigeria Plc as a result of  recent expansion in the company.  

  The investors are seeking possible acquisition of strategic stakes in the operation of the pharmaceutical manufacturing outfit.

  May & Baker Nigeria recently  completed a major stage of the  World Health Organisation (WHO) certification and pre-qualification process with the issuance of the WHO’s current General Manufacturing Practice (cGMP) to the company. 

   May & Baker Nigeria is one of two quoted companies that has received the high-profile certification.

  The company is currently in the process of completing the pre-qualification  products from  WHO-standard manufacturing complex at Ota, Ogun State-The Pharma Centre. 

  The completion of the prequalification process by  WHO will enable the  company to export its products globally and  also participate in multi-billion naira donor-funded drug manufacturing and supply contracts in Nigeria. It will also be able to undertake global contract manufacturing for other global pharmaceutical companies.

  The Managing Director, May & Baker Nigeria,  Nnamdi Okafor, who confirmed the preliminary expression of interests and discussions with the foreign investors and venture capitalist, said the company will consider strategic partnership which  can provide additional technical competence and funding that could be used to enhance returns for all stakeholders.

  According to him, “there have been a lot of interests in the company from foreign and Nigerian investors but the company will only be receptive to arrangements that protect the interests of the existing shareholders and create substantial future values for all stakeholders”.

  He noted that with the increasing success of the Centre, one of the main strategic initiatives now is to leverage the company’s balance sheet through injection of additional equity fund, stressing that this new equity issue will be done in a way that recognizes the support of existing shareholders over the turbulent years.

  “We are talking to the major shareholders to feel their pulse and see when they will be ready to take their rights and we are also talking to some foreign investors, especially those that will also bring some technical competence and skill, and I think within this year,  we should be able to strike a good balance that will ensure that everybody is taking care of in a fair way,” Okafor said.

  He  explained that the company is being careful in considering foreign interests to avoid a situation where the foreign investors will only use Nigerian investment as a cover for its trading global activities rather than value-added relationship that transfers competence, skill and technology to the Nigerian affiliate.

  He said government should also reconsider Nigeria’s foreign direct investments policies to ensure that such investments transfer values to the Nigerian affiliates through domestic manufacturing and technical know-how.

  “Some companies want to come in and have the Nigerian partners; manufacture in factories overseas and ship to Nigeria, and use you as an established name in the country to drive  the market, establish their plants and take over the market. So we are being mindful of that and we are looking for partners that truly want the long-term partnership with us who want to transfer or to share technology, so we are open to that. It is something that we will be very glad to conclude as soon as possible,” he said.