UAC of Nigeria PLC has completed a structural consolidation of its acquisition vehicle into its core operating subsidiary, C.H.I. Limited. The consolidation follows the full takeover of C.H.I. Limited, the maker of prominent consumer brands including Chivita and Hollandia, and marks the formal close of the acquisition structure.
UAC created a wholly owned special purpose vehicle (SPV), UAC Food and Beverage Company Limited, solely to carry out the acquisition of C.H.I. Limited. That SPV served as the legal purchaser of the business and held no other operational activities. With the acquisition now complete, the SPV has been dissolved and its legal rights and obligations folded into C.H.I. Limited.
The company disclosed the consolidation in a notice filed with the Nigerian Exchange (NGX). UAC described the consolidation as an administrative action designed to simplify its corporate structure and remove an extra legal layer that no longer serves a purpose.
UAC has emphasized that the consolidation does not affect day-to-day operations. The company stated that the SPV “was non-operating and had no independent impact on the group’s financial or operational performance.” As a result, there is no impact on revenue, profitability, cash flows, or shareholder interests.
The simplified structure positions C.H.I. Limited directly within UAC’s operating portfolio. Management also highlighted that consolidating the SPV eliminates unnecessary administrative and compliance costs associated with maintaining a dormant entity. UAC said the move streamlines ownership and enhances internal monitoring.
Corporate governance specialists regard the move as best practice following large acquisitions. Removing non-operating special vehicles once the transaction phase is complete reduces complexity and aligns reporting and oversight within the core group. Analysts have described the action as neutral to short-term earnings but beneficial over the medium term for control and execution discipline.
UAC also noted that the consolidation does not dilute shareholder stakes or alter ownership structure. The company maintained that because the SPV did not hold independent economic value, shareholders retain their economic rights and dividend expectations remain unchanged.
Experts quoted in the company filing contend that collapsing the SPV was anticipated. One market operator observed that UAC had already signaled the eventual consolidation of the acquisition vehicle, indicating a planned transition from transaction mode to operational integration. Another commented that the move reinforces confidence in UAC’s strategic discipline.
This corporate action underscores UAC’s focus on efficient group structure and disciplined governance. It follows the regulatory approval and closure of the C.H.I. Limited acquisition, which had been completed through the SPV. The acquisition remains a strategic expansion into the fast-moving consumer goods sector, broadening UAC’s footprint in beverages and dairy products.
The consolidation marks the final internal step in the acquisition cycle. It signals that UAC is moving fully into the post-integration phase, with its operating entities streamlined for clearer ownership lines and improved administrative efficiency.
