By Peter Egwuatu

UNION Bank of Nigeria, UBN Plc has commenced the process of rolling out N50 billion rights issue after getting shareholders’ nod to raise additional capital to finance its growth strategy. The shareholders at the 48th Annual General Meeting, AGM, held yesterday, in Lagos charged the Board of Directors to ensure the price and timing of the rights issue are favourable to enable members partake in the exercise.

The shareholders stated, “We would like the Board to make sure that the rights issue comes out at a favourable period and time that will make us exercise our rights. We are sure that the rights issue if floated at a favourable time will be fully subscribed.” Some of the shareholders, however, complained over non-payment of dividend against a profitable 2016 results of the bank.

Addressing shareholders at the meeting, Chairman of the bank, Mr. Cyril Odu, stated, “As we mark our 100th year under three broad themes, Celebrate, Impact and Lead, we should celebrate the results the bank achieved in 2016 given a very challenging macroeconomic environment.

“The bank’s strong financial and operational performance continues to affirm our business strategy and success of our transformation. There is more work to be done against the backdrop of significant economic headwinds, however we remain committed to delivering our business objectives and enhancing our competitive position in the industry.”

Managing Director/CEO, Union Bank, Mr. Emeka Emuwa said “We plan to move full steam ahead on a rights issue expected to raise N50 billion in capital. We have commenced necessary steps for a successful rights issue and expect to launch by the second quarter.”