BREAKING: Tantalizers Plc announces Messrs Food Specialties as new majority shareholder following private placement   

This development comes amid years of financial strain, as reflected in Tantalizers’ balance sheet, which has shown significant debt and diminishing revenues.

In a recent filing with the Nigerian Exchange Group (NGX), Tantalizers disclosed that Messrs Food Specialties and Organics Limited, along with Banklink Africa Private Equities Limited, have acquired a majority stake in the company.

This capital injection is expected to support strategic restructuring and help the company stabilize operations.

With the acquisition, Tantalizers Plc convened a board meeting on October 15, 2024, to formalize new appointments and initiate a strategic redirection.

The company appointed Eze Nwa-Uwa as Acting Company Secretary and reconstituted its board in alignment with the new investors’ objectives.

Newly appointed board members include:

The company stated that these board appointments mark a pivotal moment, aligning its leadership with new business priorities set by the majority shareholders.

Tantalizers’ Q1 2024 financial report revealed the receipt of approximately N1 billion in equity funding, listed in its cash flow statement.

The capital injection was achieved through a private placement, with 1,788,372,094 shares issued, raising N1,073,023,256 at an average share price of 60 kobo. The stock currently trades at 60 kobo per share.

While Food Specialties is now the largest single shareholder, their shareholding does not yet grant them full control, indicating a shared influence on strategic decision-making with the Ayeni Family.

Despite the equity injection, Tantalizers remains in a challenging financial position, recording a pre-tax loss of N231.5 million for the nine months ending September 2024.

The company’s liabilities remain substantial, with a term loan balance of N204.3 million, held with Ecobank, and trade and other payables amounting to approximately N1.29 billion.

With new private equity investors, Tantalizers Plc has an opportunity to leverage fresh capital and expertise to drive growth, improve operational efficiency, and enhance market competitiveness.