Existing shareholders to get 21%

By Providence Eboh

Union Bank Nigeria Plc has opted for the core investor option in its recapitalisation plans, in a deal that will ensure that the core investor controls 60 percent equity, while existing shareholders get 21 percent and AMCON keeps 19 percent stake in the bank.

Deputy General Manager Mr. Abayomi Oluyomi, disclosed this during a media brief at the Bank’s head office Lagos. He said that the recapitalisation plans will be finalised at the shareholders’ meeting and Annual General Meeting (AGM) at the end of September to approve the transaction.

He said that the core investors, Union Global Partners, a group of institutional investors, led by African Capital Alliance (ACA) private equity, will inject fresh fund which will increase the value of Union bank.

Speaking on what value shareholders stand to benefit he said “The Union Bank name and legacy of Barclays Bank will continue and grow, the recapitalization will bring in International Reputable companies as Shareholders.

He said part of the existing shareholding will be salvaged and saved, core Investor will have a focus to increase value of Union Bank which will benefit all shareholders, capital infusion by Core Investor, AMCON and existing shareholders will make Union Bank one of the most liquid Bank in Nigeria.

However, he said, Presently the bank has 13.1 billion shares, and is trading at 2.09 which means that the banks share value is 28 billion.

”The new right issue will bring 10 billion, the only money that will be coming in is the right issue which is 10 billion which will be supplied by AMOCON and the core investors, so is not by way of market capitalisation, AMCON and core investors will have 79 per cent, shareholders 21.”

Group Managing Director Funke Osibodu explained that there has been meeting at all levels so that they can understand what the transaction is all about .

Osibodu disclosed that in the course of the week, a website will be opened to those who wish to get details of the recapitalization, especially shareholders, a call centre will also be opened, where people can call in to get clarification since there are over 500 thousand shareholders in the banks.

Kunle Ball who spoke on behalf of the Senior and General Management staff of the bank commended the Board and Executive Management for the wonderful and extraordinary efforts they have committed in strategically repositioning the bank towards full recapitalization.

“We believe in their professional and transparent leadership and we hereby express our support for the on-going recapitalization option selected by them which unarguably is the most assured means of retaining the 94 year-old brand of “Big, Strong, Reliable” entity, a national pride.”|

Ball appreciated the effort of the customers for their patronage especially after the execution of the Transaction Implementation Agreement in August 2011, saying we thank all stakeholders and friends of the Bank for their unflinching support and prayers especially at this time as we trust God to put smiles on our faces together come October 1 st, 2011

“We most sincerely laud the support of all our shareholders for their patience and firm belief in the recapitalization process and the option chosen. It is our belief that the value of your shares would be restored and multiplied sooner than expected.

We hereby assure all our colleagues: retired and active that the recapitalization option is a win-win arrangement that will ensure that the reward of our collective labour in the past and present is realized”, he said.