Recapitalising Union Bank of Nigeria PLC For Future Growth

The Rights Issue Is Extended To 10th Feb, 2012
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Our Recapitalisation

On July 12, 2011 Union 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 this year.

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

The full capitalisation of the bank was achieved through the Asset Management Corporation of Nigeria’s (AMCON) investment to bring net asset value to zero, together with AMCON's and Union Global Partners Limited’s equity investment in the bank

Through a share reconstruction of 3 new shares for 16 previously existing ones (See The Scheme Document) we reorganised our shares available on the Nigerian Stock Exchange, and the NSE lifted its technical suspension of the shares, letting them again be traded on its floor.

Consequently, a total of 2,533,125,000 shares of N0.50 par 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 N0.50 par value at N2.09 at the time of technical suspension.

The final part of our recapitalisation, The Rights Issue offering shares at a N6.81035 per share, representing a substantial discount to the traded price, is now open to the bank’s existing shareholders only .

Union Bank Is Now Ready For The Future

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