Vita Foam’s Divestment In Sierra Leone Subsidiary Suffers Another Delay

Nigeria’s biggest foam manufacturer, Vita Foam said it has not divested its Sierra Leone subsidiary in the past two years due to failure to secure a buyer.

The company said this on Monday in its Consolidated and Separate Financial Statements for 2020.

The decision came as the manufacturer grew its profit by 72 per cent to N4.1bn in 2020, from the N2.4bn recorded in 2019.

Vita foam said, “The Directors do not believe it is still appropriate to classify the investment as ‘held for sale’ as they have not been able to secure a buyer for the investment and the investment cannot be held indefinitely as ‘held for sale’.

“They have therefore, subsequently reclassified the ‘disposal group’ as ‘Investment in subsidiary’.”

The company had initiated the process of disposing the subsidiary since 2018 over failure to make profit.

The company was also faced with the negative impacts of foreign exchange on the operations of the subsidiary.

In the 2017 financial year alone , Vita Foam Sierra Leone lost N200m.