September 06, 2007
The management of Union Bank of Nigeria Plc has given a notice of its Extra-Ordinary General Meeting that will be held on the 27th September 2007. Some of the special businesses on the agenda that will be transacted at the meeting are:
* To raise additional capital through a Placing Process to introduce a strategic investor with multinational banking experience who shall acquire not more than 30% of the aggregate ordinary shares of the Company as at the date of the Placing completion, subject in all respects to all required regulatory and statutory approvals;
* To increase the Company\'s authorised share capital from N7,500,000,000 to N10,000,000,000 i.e from 15,000,000,000 ordinary shares to 20,000,000,000 ordinary shares of 50 kobo each by the creation of 5,000,000,000 additional ordinary shares of 50 kobo each;
* That subject to the sanction of the Federal High court (\'\'the Court\'\'), the goodwill of N15,721,202,896.00 arising from the share exchange that occured pursuant to the acquisition of Universal Trust Bank Plc, Broad Bank of Nigeria Limited and Union Merchant Bank Limited be written off from the sum of N71,069,554,424.00 standing to the credit of the Share Premium Account as at 31st day of March 2007 or such other date as the Directors may consider appropriate.
Under Companies and Allied Matters Act 1990 (CAMD), goodwill which is an intangible asset, being the excess of the cost of acquiring an asset over the fair value of the net assets acquired, shall be reduced by provisions for amortisation calculated to write off that amount systematically over a period of five (5) years or less as the Directors may determine.
Thus, Union Bank of Nigeria Plc intends to write off the goodwill of N15,721,202,896.00 created by the acquisition of Universal Trust Bank Plc, Broad Bank of Nigeria Limited and Union Merchant Bank Limited by utilizing a part of N71,069,554,424.00 standing to the credit of the Share Premium Account for this purpose.