By PETER EGWUATU

Union Bank of Nigeria, UBN Plc recapitalization plans have continued to receive support from various stakeholders, as capital market operators, weekend, said the choice of credible core investors has made the Bank a good offering.

Stockbrokers, investment advisers and fund managers,  who spoke after an exhaustive presentation on the recapitalisation of the bank by its management, said the choice of core investors and fair valuation have locked in significant values into Union Bank in the immediate and distant future.

Alhaji Rasheed Yusuf, Chairman, Association of Stockbroking Houses of Nigeria (ASHON), said that stockbrokers have huge shareholding interests in Union Bank and would not want it to be nationalized. He assured that the body of capital market operators would support the success of its recapitalisation.

He said that the choice of a group of reputable international investors with requisite technical know-how and capital to drive the performance of the bank has reassured stockbrokers that their investments would soon witness notable improvement.

“Knowing who the core investors are is very key, because we are not just looking at what we will get now but also let’s say two years and beyond. The core investors are institutions well-grounded in the financial industry, they will not just come with money but also bring know-how and experience,” Yusuf said.

Under the recapitalisation deal, Union Bank would receive about N76 billion ($500 million) equity capital and N30 billion ($200 million) Tier 2 capital from a consortium of international investors to retain its nearly century-old brand and regain its competitive verve as one of the strongest and reliable banks in Nigeria.

African Capital Alliance (ACA) is leading other partners including many reputable fund managers, investment funds of The Netherland, United States Governments, Standard Chartered and many other global financial firms under the Union Global Partners Limited, a special purpose vehicle formed for the recapitalisation of the bank.

Yusuf, who is also the chief executive officer, Trust Yield Securities Limited, said that besides the fact that failing to recapitalise by the September month end deadline would mean total loss to shareholders, the offer of a core investor with focus on returns would collectively improve returns to all shareholders.

Also speaking on the Union Bank recapitalisation, Chief Olusola Dada, chief executive officer, Anchoria Investment and Securities Limited, said the fact that Union Bank will retain its brand and the reputation of the core investors would make him to support the bank.

He advised shareholders to buy more shares now that the future of the bank has become almost certain, noting that there would be immediate capital appreciation after the recapitalisation.

Managing Director, Mission Securities Limited, Mr Sam Oguntayo commended the management of the bank for stabilising the bank and securing credible investors.