By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-The Rights Issue of Union Bank of Nigeria Plc will open tomorrow Wednesday 14 2011, following the approval of the Securities and Exchange Commission (SEC).
This was contained in a Statement Tuesday by Francis Barde, Principal Manager Corporate Affairs of the Bank and made available to www.investadvocateng.com in Lagos Nigeria.
The offer opens Wednesday December 14 and closes 2011 to January 20, 2012.
According to the Statement, with the Rights Issue, existing shareholders will now have the opportunity to fully participate in the recapitalisation process of the Bank by taking up their Rights.
The Bank on September 09 2011 at a Media briefing said existing shareholders will own 21 percent (21%) stake at the end of its recapitalisation exercise compared to 6.8% formerly held; indicating an increase of 208.82 percent (208.82%) increase.
Union Bank on Thursday September 29 2011 in Lagos Nigeria notified the Nigerian Stock Exchange (NSE) that the Qualification Date for September 30 2011 has been scheduled to enable it update its Register for the purpose of its proposed Rights Issue of 1,407,291,667 Ordinary Shares of 50 Kobo each at N6.81 Kobo per share in the ratio of five (5) new Ordinary Shares for nine (9) Ordinary Shares held.
Following this development, at the Extraordinary General Meeting (EGM) held on September 30, 2011, the shareholders approved, amongst other resolutions, the Rights Issuance of 1,407,291,667 ordinary shares to existing shareholders. The unit price would be sold at N6.81 to all quailfied shareholders.
The Rights also give effect to the scheme between the shareholders, AMCON and Union Global Partners Limited which would conclude the recapitalisation of Union Bank.
As earlier reported, a Scheme of Arrangement was signed by the Bank signed with a core investor, African Capital Alliance Consortium (ACA) which would be investing $750 million and would be allotted 60% of the Bank’s total shares, while the remaining 19% shares will be allotted to the Asset Management Corporation of Nigeria (AMCON) and 21% to existing shareholders.
