By PETER EGWUATU

Non shareholders of Union Bank Nigeria (UBN) Plc can participate in the Bank’s ongoing rights issue. The Executive Director, Corporate, Int’l & Investment Banking & Treasury, Union Bank Nigeria Plc, Mr. Philip Ikeazor, who disclosed this, weekend, in Lagos, explained that the non shareholders can participate in the rights issue through the secondary market.

According to him, “Any existing shareholders who wish to denounce their rights either as a result of financial incapacity or otherwise can sell its rights at the secondary market of the Nigerian Stock Exchange (NSE). In fact, what is needed from non shareholder is to approach a stockbroker with information regarding the unit of shares needed. It will be the duty of the stockbroker to key in the volume required when the rights is traded on the Exchange.”

Union Bank rights issue opened on December 14, 2011, after the Securities and Exchange Commission (SEC) approved the rights issue following a satisfactory presentation of the Bank’s utilisation of the 2006 offers.

Union Bank is issuing 1,407,291,667 ordinary shares of 50 kobo each on the basis of five (5) new ordinary shares for every nine (9) ordinary shares held by existing shareholders as at October 21, 2011 at N6.81 per share.

Speaking to newsmen, Ikeazor said, “If the offer is considered necessary to accommodate shareholders who may not have the immediate cash to subscribe for it during the actual regulatory period, the Bank will request for additional days from regulatory authority so that no existing shareholder is left behind in exercise of his/her rights, especially during this holiday season.”

Continuing, he said, “The Bank is desirous of and eager to redeem its earlier pledge of giving opportunities to the existing shareholders to take up their rights in line with their clamour to do so during the recapitalization process.”

In his own comment, Managing Director and Chief Executive Officer, Union Registrars Limited, Mr. Tunde Ayeni, said, “Union Bank has completed its share reconstruction in order to accommodate new shares. When the entire recapitalization process is completed and where the rights issue is fully subscribed, the shareholding structure of the Bank would be: Shareholders 21 per cent, Asset Management Company of Nigeria (AMCON) 19 per cent and UGPL 60 per cent. The Union Bank rights is the highest rewarding compared to any other financial instruments as shareholders have up to 40 per cent gain from the share value.”