Business
Union Bank, Amcon Agree On Recapitalisation
The Union Bank Plc says it will use the proceeds from the sale of its toxic assets to the Assets Management Corporation of Nigeria (AMCON) to recapitalise.
Mr Francis Barde, Head of Corporate Affairs Department of the bank, made this known last Wednesday in an interview with newsmen
Barde said that the bank would also place offer for sales of Right Issues for the existing core investors and shareholders to raise the capital it needed to function optimally.
He said that this was part of the consensus reached at the bank’s stakeholders’ forum recently held in Lagos and attended by major shareholders, staff and the pensioners.
Barde said that it was suggested at the forum that the board and management should involve credible shareholders with substantial holdings to be part of the engagement processes with interested investors.
He said that the Central Bank of Nigeria (CBN) intervention in the bank was based on the poor corporate governance by the management and the high level of non-performing loans.
Barde said that the bank was determined to address the challenges by focusing on its strong and positive brand attributes to restore the stakeholders’ confidence.
“Accordingly, the bank is being repositioned in all its operations to ensure excellent customers services through the redeployment of key and senior managers,” he said.
He said that the physical infrastructure of the bank was being upgraded in some branches designated as the flagship branches and ensures optimal utilisation of its information technology.
Barde said that the stakeholders also pledged their supports for the CBN’s intervention in rescuing the bank and other various initiatives put in place by its board and management.