Press ReleaseThe Union Bank of Nigeria Plc`s recapitalisation process was further boosted last Friday with the Appeal Court`s dismissal of the suit filed by some aggrieved shareholders to stop it by challenging the authority of the Central Bank of Nigeria to protect the financial system by the actions taken in August 2009.
The decision of the court according to a statement from Union Bank’s Head of Corporate Affairs,Francis Barde, has again reinforced the validity of all the actions taken by the Board and Management of the Bank towards the capitalisation of the institution. It also reinforces the opportunity towards existing shareholders to take up their rights in the ongoing Rights Issue.
He said Union bank took the route of recapitalising by giving opportunity to the existing shareholders, core investor and Asset management Corporation of Nigeria (AMCON), which brought its negative share capital to ground zero. “The rationale for this combination was not only to retain the brand and corporate name of Union bank, the Board of Directors was guided by the need to imbue the bank with quality management, professionalism, skills, clean funds and tranparency offered by the option.
“The Rights Issue is the last phase of union bank`s recapitalisation processs , for which reports indicate that the offer would be oversubscribed. Many existing shareholders who have yet to receive their rights circular have been asking for them in order to take advantage of the opportunity to increase their stake in a bank that promises to be one of the biggest players in the Nigerian banking industry,†he explained.
In their desperate attempts to stop the bank`s well thought- out plan to recapitalise, Barde said “these aggrieved shareholders had approached the Appeal Court after the High Court, also sitting in Lagos, had struck out the suit on the ground that the plaintiffs failed to raise questions for determination in their originating summons.â€ÂÂ
