UBA Opens Right Issue of 3.29 Billion Ordinary Shares

United Bank for Africa Plc (UBA) has opened a Right Issue of 3,298,138,756 Ordinary Shares of 50 Kobo each at N4.00 per share, on the basis of one (1) new Ordinary Share for every ten (10) Ordinary Shares held as at the close of business on Wednesday, October 15, 2014.

The offer Opened on Monday, December 29, 2014 after a Completion Board Meeting of parties to the Issue which held at the bank’s head office in Lagos. According to representatives of the Lead Issuing House, United Capital Plc (formerly UBA Capital), acceptance list for the Rights shall be closing on Thursday, February 5, 2015.

Chairman of the bank, Mr. Tony Elumelu noted in his letter to shareholders that regulatory approvals for the registration of the Issue with the Securities and Exchange Commission has been obtained. He added that the new share being issued will rank pari-passu in all respects, with the existing ordinary shares of the Bank. The shares will qualify as dividend in the current year as long as the share is in the share register as at December 31, 2014.

It would be recalled that at the last Extra-ordinary General Meetings of the Bank held on October 2, 2009 and November 18, 2011, the shareholders authorized the Directors amongst many other things to raise further capital of up to Five Hundred Billion Naira (N500,000,000,000.00) by way of the issuance of shares, convertible loans, stock, medium term notes, bonds or other securities subject to regulatory approval. This resolution was passed in recognition of the need to reposition the Bank for future challenges and business opportunities.

On utilization of proceeds from the Right Issue, Mr. Elumelu explained that the estimated net proceeds of N12,731,855,169.00 after the deduction of the estimated total offer cost of N360,699,857 (which excludes N100,000,000 for printing and advertisement costs) representing approximately 2.73% of the total offer size shall be applied thus:

[table type=”standard_minimal”]
[trow]
[thcol]UTILISATION OF OFFER PROCEEDS[/thcol]
[thcol]N[/thcol]
[thcol]%[/thcol]
[thcol]PERIOD[/thcol]
[/trow]
[trow]
[tcol]

Expansion of E-banking channels and related security systems:

  • Purchase of ATMs
  • Purchase of POS systems
  • Fortification of electronic channel security

[/tcol]
[tcol]1,750,630,085.74[/tcol]
[tcol]13.75%[/tcol]
[tcol]2015[/tcol]
[/trow]
[trow]
[tcol]

Strengthening and upgrading technology platform and software:

  • Upgrading core banking application
  • IT infrastructure upgrade (server, storage, network) to support business growth
  • Implement of customer relationship management solution

[/tcol]
[tcol]1,438,699,634.10[/tcol]
[tcol]11.30%[/tcol]
[tcol]2015[/tcol]
[/trow]
[trow]
[tcol]Refurbishment of the Bank’s Head Office and 100 business offices[/tcol]
[tcol]1,680,604,882.30[/tcol]
[tcol]13.20%[/tcol]
[tcol]2016[/tcol]
[/trow]
[trow]
[tcol]Risk assets growth[/tcol]
[tcol]7,861,920,566.86[/tcol]
[tcol]61.75%[/tcol]
[tcol]2015[/tcol]
[/trow]
[trow]
[tcol]Total[/tcol]
[tcol]12,731,855,169.00[/tcol]
[tcol]100%[/tcol]
[tcol] [/tcol]
[/trow]
[/table]

 

You may also go to the download section of this site to download the Rigths Circular for further review.

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