Home » Nigerian businessman Austin Okere’s CWG launches process to write down retained losses of $5.07 million

Nigerian businessman Austin Okere’s CWG launches process to write down retained losses of $5.07 million

by Omokolade Ajayi

Nigeria-based systems solutions company, Computer Warehouse Group (CWG) Plc, has launched a capital restructuring process to write down total accumulated losses of N2.087 billion ($5.07 million) in its balance sheet.

Information gathered from The Nation revealed that the capital restructuring process launched by the company is a strategic move that will place its earnings on the path of sustainable growth as it prepares to resume dividend payments to investors.

In line with the strategic process launched by the company, CWG will reduce its share premium account by way of a share capital reduction process. The move aligns with the company’s aim to lay a foundation to improve its performance, as well as its competitiveness in the sector.

CWG is a pan-African systems solutions company that specializes in communications, integration, infrastructure, managed and support and cloud services. 

Under the leadership of the company’s founder Nigerian businessman Austin Okere, CWG has grown into a leading IT services provider in Africa.

The capital restructuring will not affect the company’s issued share capital or aggregate shareholder funds.

Meanwhile, the strategic move will reduce the credit balance in its share premium account without having any material impact on creditors.

Recently, CWG’s retained losses dropped from N2.46 billion ($6 million) in December 2020 to N2.087 billion ($5.07 million) as of Sept. 30.

The reduction in its retained losses can be linked to the resilient performance that it delivered in the first nine months of 2021, which saw the value of its assets rise from N8.05 billion ($19.5 million) in December 2020 to N10.47 billion ($25.4 million).

Okere holds a direct 23.37-percent stake in the company amounting to 590,129,287 ordinary shares. His shareholding is valued at N660.94 million ($1.6 million).

As of press time, Dec. 30, shares in CWG were trading at N1.12 ($0.00272), giving the company a $6.9-million valuation on the Nigerian Exchange.

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