By Dipo Olowookere
The sum of N3.6 billion is to be raised by owners of the popular Chicken Republic brand, Food Concepts Plc, the company has confirmed.
The amount, to be raised through rights issue, would be used to carry out store expansion, supply chain and distribution improvements as well as launching new brands to meet the flavour profile of the consumer.
In a statement issued recently, Food Concepts said it has already commenced process of rights issue after shareholders’ approval at the 16th Annual General Meeting (AGM) held on November 1, 2018.
“The rights issue will enable the company to achieve its strategic growth plans and maximise shareholders’ value. The net proceeds of the rights issue will be utilised in funding store expansion, supply chain and distribution improvements as well as launching new brands to meet the flavour profile of the consumer,” Managing Director of the company, Mr David Butler stated.
The company said it believes that the proposed rights issue presents an excellent opportunity for existing shareholders to increase their investment in the company.
So far, the company has submitted a formal application as well as the relevant documentation to the appropriate regulatory authority for approval.
Food Concept Plc is also a shareholder of Food Concept Pioneer Limited (Butterfield’s and Yum Yum Baked goods Brands), and currently operates 51 company-owned and 19 franchise restaurants across Nigeria and Ghana.
The company’s mission is to be the most loved fast food and baked goods company in West Africa by increasing its market share through affordable value food propositions, selectively opening additional stores in new and existing communities and the launch of additional brands.
Food Concept Plc aims to operate 300 Quick Service Restaurants (QSR) and to dominate the bread and sausage roll market over the next five years.
Chicken Republic faces stiff competition from other notable brands like KFC, Tantalizers, Mr Biggs and others.
