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UPDC launches N15.96bn Rights Issue

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UPDC
From Left: Folakemi Fadahunsi, Chief Financial Officer, UPDC Plc; Deborah Nicol-Omeruah, Deputy Chief Executive Officer, UPDC Plc; Fola Aiyesimoju, Chief Executive Officer, UPDC Plc; Azeezah Muse-Sadiq, Partner, Banwo & Ighodalo; Oyinda Akinyemi, Executive Director, Stanbic IBTC Capital during the UPDC Rights issue signing ceremony in Lagos.

UACN Property Development Company Plc (“UPDC” or the “Company”) has concluded arrangements to raise N=15.96 Billion via a Rights Issue (the “Rights Issue” or “Transaction”), to repay its short-term debt obligations and significantly reduce leverage. The Transaction is part of UPDC’s broader strategy to create long term shareholder value by recapitalising and repositioning the Company.

Shares in UPDC will be offered to existing shareholders whose names appeared in the register of members of the Company as at 30 September 2019 (the “Qualification Date”) in line with the Rules and Regulations of the Securities and Exchange Commission. The allotment will be on the basis of 43 new ordinary shares for every 7 ordinary shares held, at a price of N=1.00 per share.

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At the Signing Ceremony which held at UPDC’s head office in Lagos on 31 January 2020, Folasope Aiyesimoju, the Chief Executive Officer of UPDC, reiterated that the Rights Issue will enable the Company to refinance its short term debt and reduce finance costs. He further stated “The Transaction will significantly reduce the Company’s debt burden and is an important milestone in UPDC’s journey to attain a sustainable capital structure. The Company will continue to explore efforts to improve is capital and liquidity position whilst implementing growth strategies.”

UPDC’s new Deputy CEO, Deborah Nicol-Omeruah, also commented saying “The Rights Issue is a critical step towards strengthening UPDC’s capital structure and will improve the Company’s ability to pursue value-accretive opportunities in the Nigerian real estate sector, ultimately resulting in improved shareholder value. We acknowledge, with deep appreciation, the unwavering support we have received over the years from our stakeholders and shareholders and encourage our shareholders to re-affirm their support for the Company by fully participating in the Rights Issue.”

Oyinda Akinyemi, speaking on behalf of Stanbic IBTC Capital Limited, Issuing House for the Rights Issue, commended the management of UPDC for the giant strides taken in turning the Company around, and for the commitment shown towards ensuring a successful Rights Issue.

Full terms of the Rights Issue will be set out in a Rights Circular to be mailed directly to shareholders of the Company. The Rights Circular contains a Provisional Allotment Letter and Participation Form and where in doubt, shareholders should consult their Stockbroker, Fund/Portfolio Manager, Accountant, Banker, Solicitor, or any other professional adviser for guidance before subscribing.

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