Existing Shareholders retain 21 per cent of Union Bank

// Biz | Existing Shareholders retain 21 per cent of Union Bank
Email to a friend Plain text Print version // Font size: Decrease font Enlarge font

Existing shareholders of Union Bank will still retain 21 percent of the entity at the conclusion of ongoing capital injection by the new core investor. According to the banks’ group treasurer, Abayomi Oluyemi, the Asset Management Corporation of Nigeria (AMCON) will own 19 percent while the new core investor group will own 60 percent. As part of the scheme of arrangement, 10.967 billion shares will be cancelled while share reconstruction will be retained on the basis of 3 new shares for 16 existing shares.

At a presentation held in Lagos yesterday, he explained that the whole arrangement to recapitalise the bank would benefit all the parties. “The recapitalisation will bring in International Reputable companies as Shareholders. Core Investor will have a focus to increase value of Union Bank which will benefit all shareholders.” He added that the capital infusion by core investor, AMCON and existing shareholders will make Union Bank one of the most liquid bank in Nigeria.

For the customers, they would get the benefit of an old trusted brand in a renewed bank while major improvements in infrastructure, services and technology will make the banking experience easier and more enriching. “Level of capital injection means your money is safer than ever before. International best practice implemented in your bank while you can continue your business as usual (no new cheque book) with unusually great service.” Mr Oluyemi said the rejuvenated institution would ensure that the legacy of Union Bank continues to exist, while staff contribution to the legacy continues to be relevant and years of service continues to count towards career progression and entitlements of staff. “Staff stand to lose a lot if Union Bank ceases to exist as they will be required to reapply to the new bank and years of service will begin afresh.

Group managing director of the bank, Funke Osibudo said all is set for the court ordered meeting on September 30 seeking shareholders’ approval to go ahead with the recapitalisation plans. The meeting is to approve the scheme of arrangement between the lender and its potential core-investor - Union Global Partners limited.

Union Global Partners is a consortium comprising reputable names like ACA B - Holdings limited (ACA managed fund, FMO Netherlands, Standard Chartered Private Equity, Auctor capital, Carlye Capital, High Vistar); The Keffi Group VIII LLC ( Keffi Group, JC Flowers, BGI); ABC Holdings Limited (Banc ABC Botswana); and Discovery Group Of Connecticut, USA.

These will bring in the initial investment of $500 million while US OPIC will subsequently invest $250 million as Tier 2 capital.

Tagged : Christian Chukwu, Plateau State Government Threatens To Sack 11000 T, Nigeria military, Aminu Tambuwa, Jim Iyke Mobbed By Fans In Sierra Leone

Headlines Newsview all

Blac Chyna Explains Why She Hasn’t Had S3x With Her New Man

Her special 'friend' J'Leon Love just won a big boxing match in Las Vegas. But Blac Chyna said she hasn't been able to give J'Leon Love ... Full story

Buhari’s Speech To Governors: Find Money To Pay Your Workers (READ)

ADDRESS BY HIS EXCELLENCY PRESIDENT MUHAMMADU BUHARI, AT THE OCCASION OF THE INAUGURATION OF THE NATIONAL ECONOMIC COUNCIL, HELD AT THE COUNCIL CHAMBER OF THE ... Full story

Gay Marriage Will Help Us Fight Boko Haram, ISIS - Rosa Brooks

The legalisation of Gay marriage as a constitutional right by the Supreme Court of the United States, has taken a dramatic turn as ex-aide to ... Full story

Cheating Housewife Joy Bakare, Dies In Lover’s Custody

There was confusion on Monday at Ejigbo, after a housewife, Mrs Joy Bakare, impregnated by her secret married lover died in her lover’s custody after ... Full story

Residents, Motorists Panic In Ikorodu Over Oba’s Demise

Following the reported demise of Oba Johnson Fatola of Ikorodu whose death was announced around 6pm on Monday, June 29, 2015,the residents and visitors to ... Full story

Muhammadu Buhari Yet To Appoint Chief Of Staff - Presidency

The presidency has denied reports that President Muhammadu Buhari has named his chief of staff. Rumours were rife on Monday that Mr. Buhari on Monday appointed ... Full story

Buhari Restores Accreditation Tag Of Journalist Expelled From Aso Villa

The accreditation tag of the State House correspondent of German Radio, Deutsche Welle, Mr. Ubale Musa, which was withdrawn by the Goodluck Jonathan administration, was ... Full story

Bus Driver Lies Under His Bus As LASTMA And VIA Officials Try To Impound His Car

This happened around the Muson Centre/TBS area of Lagos a few minutes ago. The bus driver was stopped for a traffic offense and as LASTMA ... Full story

Caroline Danjuma’s Controversial Age Claim Causes Serious Debate On Instagram

She posted this photo on her Instagram page which implies she’s 28. This has caused serious reactions from fans. They are insisting she’s about 34. ... Full story

IK Ogbonna And Sonia Morales Weds

The couple officially tied the knot today in Serbia. Congrats to them. See more photos below… ... Full story

Mum Admits Killing Her Own Children And Says She 'Feels No Sorrow For Them Demons'

A mother who killed two of her children leaving their bodies in her kitchen freezer has pleaded guilty to their murders saying: “I don’t feel ... Full story

Comment on: Existing Shareholders retain 21 per cent of Union Bank

Rate this article

0

Breaking News

Trailer Of Mum, Dad Meet Sam Starring Joseph Benjamin Video

Check Out The Trailer Of ‘Mum, Dad Meet Sam’ Starring Joseph Benjamin   ...

I Am Not Threatened By Younger Colleagues - Ali Baba

One of the most respected comedians in Nigeria, Ali Baba was a year older some days back and he was hosted to various parties by ...

Fuel Queues Returns In Abuja

Fuel scarcity, Tuesday resurfaced in Abuja, with long queues at almost all the petrol stations, as motorists faced slight difficulties in buying the commodity. This was ...

CBN Adjusts Forex Peg As Naira Hits 228

The Central Bank of Nigeria on Tuesday lowered the naira peg to 196.95 against the dollar from 196.90 it set last week. This made it the ...

Clive Omoniyi Emerges PENGASSAN NLNG Branch Chairman

The Petroleum and Natural Gas Senior Staff Association of Nigeria has elected Clive Omoniyi as the Chairman of the Nigeria LNG branch of the association. A ...

GTBANK: Serial Debtor Or Killer Of Businesses?

The silent rule of responsibility has always hammered on the fact that, ‘to whom much is given, much is expected’ and this takes us straight ...

Customers Panic As Enterprise Bank Loses Database To Hackers

Enterprise Bank is a bank with few branches located across Nigeria, meanwhile, it’s obvious why they don’t have branches abroad. A bank whom can’t secure or ...

Ghanaian Sulley Muntari And AC Milan Terminate Ties

Former Portsmouth and Inter Milan midfielder Sulley Muntari is set to depart AC Milan following termination of his contract by mutual consent. The Ghanaian joined the ... Full story

Manchester United Have Not Made A Serious Bid For Schneiderlin - Ronald Koeman

Southampton manager, Ronald Koeman insists the club are yet to receive any “serious” offer for Morgan Schneiderlin this summer. The midfielder has been linked with a ... Full story

My Father Warned Me Against Wrecking My Marriage—Gloria Young

The marriage of Nollywood stars, Gloria and Nobert Young has become inspiration to many people both within and outside the entertainment industry in Nigeria. They have ...