By Peter Egwuatu

UNION Bank Nigeria Plc’s N50 billion Rights Issue opened for subscription, yesterday, just as Forte Oil Plc has put on hold its proposed N20 billion capital raising after receiving the approval of Securities and Exchange Commission, SEC.

Union Bank is offering 12.1 billion ordinary shares of 50 kobo each at N4.10 per share to the existing shareholders on the basis of five new shares for every seven shares held as at August 21, 2017. The Bank had kicked off a road show to sensitize shareholders at an event held in Enugu last week.

Chief Executive Officer of the bank, Mr. Emeka Emuwa, said: “With the commencement of the Rights Issue subscription, we have now officially entered a new phase of our transformation where we will be focused on accelerating business growth to deliver on our objective of becoming one of Nigeria’s leading financial institutions.”

He further disclosed that shareholders’ forum will also hold in Lagos, Port-Harcourt and Abuja this month. The Issuing Houses involved in the transaction are Chapel Hill Advisory Partners Limited as the Lead Issuing House with Stanbic IBTC Capital Limited and FSDH Merchant Bank Limited as joint issuing houses.

Meanwhile, Forte Oil, in a statement sent to the Nigerian Stock Exchange NSE, yesterday, said: “The board has taken a strategic decision to put the offering on hold pending the conclusion of an ongoing corporate restructuring with respect to maximising emerging opportunities in the Nigerian energy sector which will be to the ultimate benefit of all our stakeholders.”

In August, Forte Oil said it was in talks with a major refinery to form a strategic partnership for local refining of petroleum products.

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