Union Bank Recapitalises For Future Growth

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The Union Bank of Nigeria Plc will soon close her Rights Issues.

According to the Bank news, the final part of the recapitalisation excessive, the Right Issue offering shares at a N6.81035 per share, representing a substantial discount to the traded  price which is still open to the bank’s shareholders only.

The Right Issue however, is expected to close on the 20th of January, 2012.

On July 12, 2011, the Bank signed a Transaction Implementation Agreement (TIA) with its potential core –investor, the African Capital Alliance Consortium (ACA consortium), in furtherance  to the Memorandum of Agreement (MOA) signed in March last year.

With this development, the Bank’s recapitalisation process would translate  to the ACA Consortium invest $750 million in the Bank consisting of $500 million equity and $250 million Tier 11 capital.

Meanwhile, the full capitalisation of UBA was achieved through the Asset Management Corporation of Nigeria’s (AMCON) investment to bring net asset value to zoro, together with AMCON’s and Union Global Partners Ltd’S equity investment in the bank.

Consequently, a total of 2,533,125,000 shares of 50 kobo per value at N11.15 per share were admitted on the Daily Official list on Friday, December 23,2011, in replacement for the former issued shares of 13,509,726,273 of 50 kobo per value at N2.09 at the time of technical suspension.