Proshare Logo
   Market Date: 21-11-2014   
Agriculture ARTS FINANCE All One Min News Archives Bonds Cap Mkt Sentiments Capital Market CASHLESS NIGERIA Commodities Corporate Earnings Daily & Weekly Market Updates Enterpreneurship ETFs Forex Frauds & Scandals General Global Market Insurance Investors NewsBeat Islamic Finance Mergers & Aquisitions Money Market Mortgage Mutual Funds Nigeria Economy Oil Sector Opinions and Analysis Pensions People Personal Finance Politics Power Products & Services Professionals Property Public Offers Private Placements Regulators REITs Stock PICKS Taxation Telcos Travel & Tours Unlisted OTC MARKET World of Business

Union Bank may flag-off rights issue next week

Category: Mergers & Aquisitions


  Read (3160)
Union Bank may flag-off rights issue next week

Tuesday, October 11, 2011 10:31 AM 

 

Related News:

 

Chapel Hill Denham Securities: RE: Scheme of Merger

 

Based on the unanimous endorsement of its recapitalisation agenda by shareholders, Union Bank of Nigeria Plc, at the weekend explained that it had concluded all necessary arrangements to begin its rights issue.  

According to the bank, the rights issue which was awaiting the approval of the Securities and Exchange Commission (SEC) was expected to pave the way for existing shareholders to own up to 21 per cent of the bank’s equity by taking up 1,407,291,667 ordinary shares. Under the arrangement, each shareholder would be entitled to receive five new ordinary shares for every nine reconstructed shares held.  

The management of the bank explained that the transaction would be at a price of NGN6.81 per share, which was equivalent to the price per share paid by Union Global Partners Limited, the approved core investor. “This has highly been discounted in the light of the share reconstruction and considering its current technical suspension at NGN2.09 with a market capitalisation of NGN28.235bn based on the 13.510bn ordinary shares,” said Executive Director in charge of International & Investment Banking & treasury, Philip Ikeazor.  

Explaining further during an interactive session with journalists, Ikeazor said, Union Global Partners Limited, would inject USD500mn equity and USD250mn Tier II capital bringing its investment to USD750mn representing 60 per cent of the bank’s equity.  

Also, the Asset Management Corporation of Nigeria (AMCON) would be a shareholder in exchange for the provision of financial accommodation with 19 per cent equity. Meanwhile, he pointed out that there was a standby investment arrangement to be provided by AMCON to cover any shortfall in the equity investment amount by Union Global Partners Ltd (UGPL) within 90 days.  

Executive Director Commercial Banking (South), Mr. Adekunle Adeosun, who represented the chief executive officer of Union Bank of Nigeria Plc, said that the rights issue was expected to cushion the effect of the loss of shareholders in terms of the devaluation of the bank’s share price in the capital market due to the banking crisis.  

  

Source: abndigital.com  

 

http://www.proshareng.com/quote/UBN

 

 



Tags: , 



Comment With Your Facebook or Yahoo! ID


Latest news


News on Mergers & Aquisitions

About Us

Who We Are
Our Team & Partners
Corporate Governance
Advertise with Us
Subscribe / Unsubscribe
Site Map
News Feed - RSS
Newsletter
Contact Us
Volunteer Program
Message from CEO
Resources

News & Features
The Analyst / Market Data
Investor Relations Portal
The Regulator
Economy & Politics
WebTV
Training Portal
Events Calendar
NewsStands - Online Reputation

Products and Services

Research & Market Intelligence
Analyst Services
Offers & Rights Support Service
Investor Relations Services
Alert & Subscription Services
Share Support Services
Proshare Consult
Event & Seminar Coverage
Market Directory
File a Complaint
News & Analysis

#1minNews
News from TheANALYST
Video News from WebTV
Money Market Updates
Opinions & Analysis
Nigerian Economy
Market Data
The Regulator
Newsletters
Discussion Forum
Policy

Subscriber Agreement
Privacy Policy
Data Policy
Disclaimer
Copyright Policy
Trademarks
Comments in Site
Advertising Code
Conflict of Interest
Content Partnership
3rd Parties

Online Trading and Execution
Training
Legal Support Services
Web/Technology Services
File a Complaint